AUD/JPY Price Analysis: Trims some earlier losses, steady around 81.00

• The Australian dollar got hit by risk-off market sentiment but recovered its earlier losses near the New York close.
• AUD/JPY Price Forecast: The pair is downward biased, though Monday’s price action suggests that buyers lift the cross-currency from 80.69.

The end of the New York session shows a slight improvement in market mood, which witnessed the AUD/JPY dipping to Monday’s daily low at 80.69, to then stage a recovery above the 81.00 figure. At the time of writing, the AUD/JPY is trading at 81.40.

The market mood of the European session, which witnessed worst than expected reported global PMI’s, carried over the North American one. However, increasing tensions in the Ukraine – Russia conflict spurred a sell-off across assets with the “risk” word attached, led by the US stock market. In the FX complex, risk-sensitive currencies like the AUD, the NZD, and the CAD were hit by safe haven peers, though trimmed earlier losses at the end of the session.

AUD/JPY Price Analysis: Technical outlook

The AUD/JPY daily chart depicts the pair as downward biased. The break under December 16, 2021, daily high at 82.44, witnessed the break of the 200, 100, and 50-day moving averages (DMAs), located at 82.53, 82.36, and 82.08, respectively.

Nevertheless, as portrayed by the candlestick chart, Monday’s price action left a large bottom wick that shows that buyers entered the market, lifting the AUD/JPY above the 81.00 figure and beyond it.

That said, the AUD/JPY first resistance level would be the 50-DMA at 82.08. A breach of the latter would expose the 100-DMA at 82.36, immediately followed by the 200-DMA at 82.53.

On the flip side, the first support would be 81.00. A break under that level would open the door for a test of December 3, 2021, a daily low at 78.79, but it would find some hurdles on the way south. Firstly the January 24 low at 80.70, followed by December 20, 2021, daily low at 80.27, and then the aforementioned December 3 daily low at 78.79.