AUD/JPY Price Analysis: Rebounds slightly, yet downward momentum lurks
22.06.2023, 22:29

AUD/JPY Price Analysis: Rebounds slightly, yet downward momentum lurks

  • AUD/JPY sees minor recovery but remains under pressure with a 0.84% weekly loss.
  • The pair shows signs of losing momentum, with RSI exiting overbought territory.
  • Upside and downside targets were set, with potential falls to 95.82 and gains challenging 97.67.

The AUD/JPY recovers some ground following Tuesday’s loss of more than 1%, posting back-to-back days of gains, though it remains at around the September 20 daily high at 96.54. As Friday’s Asian session begins, the AUD/JPY exchanges hands at 96.63, registering minimal losses of 0.05%.

AUD/JPY Price Analysis: Technical outlook

The AUD/JPY is still trading with losses of 0.84% in the week but remains upward-biased as price action sits above the Ichimoku Cloud. Nevertheless, the Tenkan-Sen level, at 95.82, is closing into the candlestick, suggesting that the uptrend is losing momentum, opening the door for a pullback.

In addition, the Relative Strength Index (RSI) indicator exited from overbought territory. At the same time, the three-day Rate of Change (RoC) portrays buyers losing momentum. Hence, the AUD/JPY path of least resistance is downward in the near term.

The AUD/JPY first support would be the 96.00 figure. Break below will tumble the AUD/JPY pair toward the Tenkan-Sen Level at 95.82. The AUD/JPY next stop would be the Senkou Span A at 94.89, and the Kijun-Sen Level at 93.96.

Conversely, if AUD/JPY resumes upwards and breaks above the June 19 low of 96.73, the 97.00 figure would be up for grabs. Upside risks lie at the year-to-date (YTD) high of 97.67, ahead of challenging last year’s high at 98.59.

AUD/JPY Price Action – Daily chart

 

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