AUD/JPY Price Analysis: Confined to the 93.00-75 range despite RSI at overbought levels

• The AUD/JPY begins the Asian Pacific session up 0.23%.
• A dismal market mood weighed on the AUD, but a soaring USD/JPY capped the AUD/JPY Monday’s losses.
• AUD/JPY Price Forecast: In consolidation, waiting for a fresh catalyst.

The Australian dollar clings to gains as the Asian Pacific session begins, though it remains in choppy trading in the 93.00-70 range for the last five days. At the time of writing, the AUD/JPY is trading at 93.51, up some 0.23% at the time of writing.

Risk sentiment, despite a weaker JPY, weighs on the AUD

US equities finished Monday’s session mixed, reflecting the market mood. In the FX complex, the greenback was the gainer in the session, while the antipodeans and safe-haven peers were the laggards. It’s worth noting that the USD/JPY reached a 20-year high above the 127.00 mark, capping the AUD/JPY losses.

• Also read: USD/JPY reaches a 20-year high and breaks 127.00 on high US yields

On Monday, during the Asian session, the AUD/JPY opened around 93.40s before surging towards the daily high at 93.71, followed by a 60-pip fall towards 93.07, a level unsuccessfully broken for the last three days.

AUD/JPY Price Forecast: Technical outlook.

The AUD/JPY daily chart depicts choppy trading in the pair, consolidating in the 93.00-75-0/80 range for the last five trading days. It also shows a negative divergence between price action and the Relative Strength Index (RSI), with the AUD/JPY printing successive series of higher highs, contrarily to the RSI, recording lower highs.

In the meantime, the AUD/JPY 1-hour chart depicts the pair as upward biased and aims to retest the 93.71 Monday’s highs, which, once broken, would open the door for a 94.00 test. However, it would find some hurdles on its way up.

The AUD/JPY first resistance would be the confluence of the R1 daily pivot and a five-day downslope trendline around 93.65. A breach would expose April 13 daily high at 93.86, followed by the R2 daily pivot at 94.00.

Downwards, the AUD/JPY first support would be the confluence of the 50 and 100-simple moving averages (SMAs) around the 93.42-43 area. A decisive break would expose the daily pivot at 93.37, followed by April 18 daily low at 93.07, close to the S1 daily pivot at 93.01.