AUD/JPY Price Analysis: Recovery stalls and bears to step in around 89.00

• On Wednesday, AUD/JPY seesaws around 89.20s, ahead of the Bank of Japan’s monetary policy decision.
• AUD/JPY Price Analysis: Bearish biased, and it might resume its downtrend soon.

The AUD/JPY snapped two days of consecutive losses on Monday and rebounded nearby last week’s lows of 88.62. The Australian Dollar (AUD) got bolstered by traders booking profits on Japanese Yen (JPY) longs (AUD/JPY shorts) as they get ready for the Bank of Japan’s monetary policy decision. The AUD/JPY is trading at 89.33 after hitting a daily low of 89.02 at the time of writing.

AUD/JPY Price Analysis: Technical outlook

After forming a double bottom in early 2023, the AUD/JPY shifted its bias to downwards, as it could not crack the 200-day EMA decisively. Therefore, sellers leaned to it, and the AUD/JJPY commenced a fall of almost 3% toward last week’s lows, breaking below the 20-day Exponential Moving Average (EMA) at 90.18.

Oscillators like the Relative Strength Index (RSI) and the Rate of Change (RoC) give bearish signals, opening the door for further losses.

Although the AUD/JPY had trimmed some of last Friday’s losses due to the bias of the pair, it could be viewed as an opportunity for sellers to re-engage on shorts at a better price. Therefore, the AUD/JPY first support would be the 89.00 mark, followed by the last week’s low of 88.62, followed by the YTD low of 87.41.

AUD/JPY Key Technical Levels