AUD/JPY Price Analysis: Struggles at the 200-DMA, drops below 92.00
06.12.2022, 22:21

AUD/JPY Price Analysis: Struggles at the 200-DMA, drops below 92.00

  • The Australian Dollar appreciates against the Japanese Yen, though it drops below 92.00 after hitting a new weekly high.
  • AUD/JPY Price Analysis: Would fall to 90.00 once it clears December’s low at 91.08.

The Australian Dollar (AUD) rose against the Japanese Yen (JPY), though it gave back some of its earlier gains after hitting a daily high of 92.33. The 200-day Exponential Moving Average (EMA) at 91.97 was the main reason for the AUD/JPY to retrace from three-day highs, and at the time of writing, the AUD/JPY trades at 91.63, below its opening price by 0.12%.

AUD/JPY Price Analysis: Technical outlook

From a daily chart perspective, the cross-currency pair is neutral to downward biased, as it should be remembered that a break below the 200-day EMA is used as a barometer for long-term trends. Additionally to the 200-day EMA capping the rally, the bottom-trendline of a descending channel that intersects with the 200-EMA are two technical signals that would keep the AUD/JPY downward biased. Both oscillators lack direction, with the Relative Strength Index (RSI) almost flat at bearish territory and the Rate of Change (RoC) unchanged.

If the AUD/JPY breaks below December’s 5 daily low at 91.08, that will pave the way for substantial losses. The following support would be the October 13 swing low at 90.83, followed by the August 2 daily low at 90.52. A decisive break would expose the 90.00 psychological level.

On the upside, the AUD/JPY first resistance would be the 200-day EMA at 91.97. Breach above will clear the way to the 20-day EMA at 92.88, followed by the 93.00 figure.

 

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