AUD/JPY Price Analysis: Despite reclaiming 93.00 figure, sellers are lurking, eyeing the 100-EMA around 91.00

• The AUD/JPY erased Wednesday’s losses on investors’ renewed optimism as Fed officials downplayed a recessionary scenario.
• The cross-currency pair rallied more than 100 pips in the day, breaking above the 93.00 mark.
• AUD/JPY buyers’ failure at 93.40 might open the door for further losses.

The AUD/JPY rises on investors’ positive mood, trimming Wednesday’s losses, up by almost 1% as the New York session ends. At the time of writing, the AUD/JPY is trading at 93.00.

Sentiment remains upbeat as the Asian Pacific session begins, as Fed speakers downplayed recession feats, seeing a soft landing as achievable. Policymakers backed a 75 bps rate increase in July of the Federal funds rate (FFR) while also noting that the US economy is strong.

The AUD/JPY Thursday’s price action shows the pair began trading around 92.20 before dipping toward the daily low at 91.89 during the Asian session. However, European and North American traders sent the cross rallying above the 93.00 figure as the day progressed.

AUD/JPY Daily chart

The daily chart shows that the AUD/JPY is upward biased. However, a rising wedge, already broken the downside, might put a lid on the AUD/JPY jump from weekly lows. Also, on its way north, the confluence of the 20-day EMA, with the July 4 high around the 93.28-93.38 area, would be difficult to overcome, but If AUD/JPY achieves it, it will clear the way for further upside. Therefore, the AUD/JPY’s first resistance would be the July 5 high of around 93.98, followed by the rising wedge’s bottom trendline around 94.80.

Otherwise, the AUD/JPY first support would be the 92.00 figure. A breach of the latter would expose the July 6 daily low at91.52, followed by a challenge of the 100-day EMA at 90.68.

AUD/JPY Key Technical Levels