AUD/JPY Price Analysis: Uptrend stalls near 96.00 as sentiment wobbles

• The AUD/JPY remains on the right foot during the week, gaining 1.20%.
• Asian equity futures are registering losses, augmenting the appetite for safe-haven peers and bolstering the JPY.
• AUD/JPY Price Analysis: Buyers' failure at 96.00 could pave the way for further losses, as sellers eye 94.50.

The AUD/JPY barely grinds lower as the Asian Pacific session begins, down by almost 0.03%. On Wednesday, the cross-currency pair hit a fresh 7-week high around 95.76 before diving towards the 95.20s region. At the time of writing, the AUD/JPY is trading at 95.24, amidst a mixed market mood, as US equities rose in the last hour of the trading day while Asian equities prepare for a lower open, as shown by market futures.

AUD/JPY Price Analysis: Technical outlook

From a technical perspective, the AUD/JPY daily chart depicts a neutral bias, as the cross-currency has failed to break above the 96.00 figure to challenge the YTD high of around 96.88. Nevertheless, the AUD/JPY shifted from upwards-neutral to neutral on some factors. First, the Relative Strength Index (RSI), albeit in bullish territory, begins to show signs of aiming lower. Secondly, the distance between the 20, 50, and 100-day EMAs reduced in the last six trading days, opening the door for consolidation before resuming upwards or turning downwards.

AUD/JPY 1-hour chart

The AUD/JPY 1-hour chart illustrates the pair trending in an ascending channel since July twelve. AUD/JPY traders should notice that on Wednesday, price action faced the top-trendline of the previously mentioned channel, indicating prices reaching overbought conditions and opening the door for a pullback. Indeed that happened since the North American session began, with traders sending the AUD/JPY towards the daily low at 95.02.

Nevertheless, at the time of writing, the AUD/JPY is below the mid-line of the ascending channel and under the daily pivot, indicating that sellers are in charge. Therefore, the AUD/JPY first support would be the 50-hour EMA at 95.05. Break below will immediately send the pair to the S1 pivot point at 94.92, followed by the bottom trendline of the ascending channel around 94.70-80. Once cleared, the AUD/JPY's next support would be the 100-hour EMA at 94.54.

On the flip side, the AUD/JPY resistance levels would be the confluence of the daily pivot point and the 20-hour EMA at 95.33. Break above will send the price towards the R1 daily pivot at 95.66 before challenging the July 20 high at 95.75.

AUD/JPY Key Technical Levels