AUD/JPY Price Analysis: Drops due to Japanese intervention woes

• AUD/JPY edged lower by 0.66% on Wednesday, courtesy of Forex intervention rumors.
• From a daily chart perspective, the pair remains upward biased, but to re-test the YTD high, AUD/JPY buyers need to conquer 97.00.
• Short term, the AUD/JPY is headed south and can fall as low as 95.00, just above the 200-EMA.

The AUD/JPY dropped on Wednesday after the Japanese authorities threatened to intervene in the Forex Markets. So traders, aware of the verbal intervention, bought the yen to the detriment of most G8 currencies. As the Asian Pacific session begins, the AUD/JPY is trading at 96.58, slightly down by 0.02%.

AUD/JPY Price Analysis: Technical outlook

From a daily chart perspective, the AUD/JPY remains upward biased, with the pair bouncing off the daily low at 95.98, just above the 20-day EMA. The good news for AUD/JPY is that the cross-currency stay above the 96.00 figure, keeping risks skewed to the upside, further confirmed by the RSI’s reading at 56.88 in positive territory. If the AUD/JPY tumbles below the 20-day EMA, the pair will slide below the 95.00 figure. Nevertheless, the path of least resistance is to the upside, meaning that a re-test of the YTD high at 98.59 is on the cards.

However, the AUD/JPY bias is neutral-to-downwards in the short term, with immediate resistance at the daily pivot point at 96.74. Break above will expose the 50-day EMA at 96.90, ahead of testing the psychological 97.00 figure, which is also the open of the week. Once it’s cleared, the next supply zone would be the confluence of the 20-EMA and the R1 daily pivot at 97.48.

On the other hand, the AUD/JPY first support would be the 96.00 psychological figure. A breach of the latter will expose the S1 daily pivot at 95.85, followed by the S2 pivot point at 95.12, ahead of the 200-EMA at 94.82.

AUD/JPY Key Technical Levels