AUD/JPY Price Analysis: Seesaws around 96.00 on a risk-off impulse

• AUD/JPY erased its earlier weekly gains, almost flat up by 0.08%.
• The cross-currency daily chart shows the AUD/JPY shifting to a neutral-to-downward bias, further cemented by the RSI, diving towards the 50-midline.
• Short term, the AUD/JPY is downward biased, and it could fall towards the 95.20 area.

The AUD/JPY is slightly dropping as the Asian Pacific session begins, though extending Tuesday’s fall, courtesy of a risk-off impulse in the financial markets, as shown by global equities tumbling. At the time of writing, the AUD/JPY is trading at 96.10, barely down by 0.01%.

AUD/JPY Price Analysis: Technical outlook

Even though market sentiment shifted sour, the AUD/JPY has remained so far above all the daily moving averages (DMAs), meaning that it still has an upward bias. Nevertheless, price action edged lower since hitting the YTD high at  98.59 on September 13, meaning the pair has recorded almost seven consecutive sessions of losses. Therefore, the AUD/JPY bias shifted to neutral, with risks slightly skewed to the downside. Because the Relative Strength Index (RSI) accelerated its downfall to the 50-midline, and a cross below could exacerbate an AUD/JPY fall towards the 50-day EMA at 94.91, followed by a drop to the 100-day EMA at 93.70.

Near term, the AUD/JPY is downward biased for some reasons. Firstly, the AUD/JPY tumbled below the 20, 50, and 100-EMAs. That, alongside the Relative Strength Index (RSI) dropping to bearish territory, shows sellers gathering momentum ahead of the central bank’s monetary policy meetings.

Therefore, the AUD/JPY first support would be an upslope trendline that passes around 95.80. Once cleared, the next support would be the S1 daily pivot at 95.81, followed by the S2 pivot point at 95.53, ahead of the 200-EMA at 95.27.

AUD/JPY Key Technical Levels