AUD/JPY Price Analysis: AUD bulls fight back and reclaim 93.60 amid the lack of catalyst

• The AUD/JPY rallied late in the New York session and gained 0.16%.
• AUD/JPY Price Forecast: Upward biased, but RSI at overbought levels, and negative divergence between RSI/price action, might open the door for further losses.

The AUD/JPY edges slightly up as the North American session winds down, up 0.16% amid an upbeat market mood, as global bond yields fell. At the time of writing, the AUD/JPY is trading at 93.68, near the week and year-to-date highs.

On Wednesday, the AUD/JPY lifted from daily lows when the Reserve Bank of New Zealand (RBNZ) took the market by surprise, hiking rates by 50 bps to the Overnight Cash Rate (OCR). Due to its close ties with New Zealand, the Australian dollar reacted positively and edged higher against most G8 currency pairs. Nevertheless, during the North American session, some safe-haven flows and a “buy the rumor, sell the fact” reaction to the RBNZ’s decision weighed on the AUD/JPY, which fell towards daily lows around  93.00 flat.

AUD/JPY Price Forecast: Technical outlook

In the last few days, the price action has kept the AUD/JPY range-bound in the 92.40-93.80 area. Nevertheless, the cross-currency pair remains upward biased. However, the Relative Strength Index (RSI) at 73.79 within the overbought area further confirms the uptrend is overextended, a signal that might correct lower or probably would break towards fresh year-to-date highs.

Upwards, the AUD/JPY’s first resistance would be April 13 93.86 daily high. A breach of the latter might open the door towards the YTD high at 94.31, but first, AUD/JPY bulls would need to reclaim the 94.00 mark

On the flip side, the AUD/JPY first support would be the April 11 daily low at 92.42. A decisive break would expose the 92.00 mark, followed by March’s 31 90.76 daily low.

Technical levels to watch