AUD/JPY Price Analysis: Dwindles from weekly highs and dives to 94.20s on risk-off mood

• Despite backing away from weekly highs, the AUD/JPY is gaining 0.72% weekly.
• Risk-aversion abates appetite for risk-sensitive currencies, boosting the JPY.
• AUD/JPY Price Analysis: Remains upward biased, but sellers are lurking as a rising wedge dawn.

The AUD/JPY recoils from weekly highs as a bearish piercing pattern materializes in the last couple of days’ price action, which tumbles the cross-currency below the 95.00 mark on Wednesday. As the Asian session begins, the AUD/JPY is trading at 94.25, down by a minimal 0.08% at the time of writing.

Asian futures slide late in the New York session, illustrating a dismal mood. Fears that the US might get into a recession and threatens to trigger a more profound global economic slowdown weighed on the AUD/JPY. Additionally, the US Fed Chair Jerome Powell acknowledging the possibilities of causing a recession kept investors uneasy.

AUD/JPY Price Analysis: Technical outlook

Daily chart

The cross-currency stays upward biased, as shown by the daily chart. Nevertheless, AUD/JPY’s Wednesday’s price action shifted negatively in sync with the Relative Strength Index (RSI), crossing below the RSI’s 7-day SMA, indicating that sellers are stepping into the pair. That, alongside a rising wedge surfacing, might open the door for further losses if the AUD/JPY breaks below the wedge’s bottom trendline.

For that scenario to play out, the AUD/JPY bears need to step in and drag prices lower. In that case, the AUD/JPY first support would be the June 22 low at 93.58. A breach of the latter would send the pair slumping towards 93.00, followed by the June 16 cycle low at 91.96.

AUD/JPY Key Technical Levels