AUD/JPY Price Analysis: Stumbles below the 96.00 figure on risk-off impulse

• AUD/JPY dropped on Wednesday, courtesy of a dampened market sentiment.
• The AUD/JPY daily chart shifted from upwards to neutral biased as the pair fell below the 20-day EMA and reached fresh weekly lows.
• Short term, the AUD/JPY is downward biased; it could fall below 95.00 if it clears the 200-EMA on the downside.

The AUD/JPY is slightly advancing as the Asian Pacific session begins after the US Federal Reserve decided to raise rates as widely expected. Nevertheless, on Wednesday, the cross-currency dropped by 0.62% as market sentiment shifted sour, as market participants sought safe-haven assets, meaning the US dollar and the Japanese yen. At the time of writing, the AUD/JPY is trading at 95.56.

AUD/JPY Price Analysis: Technical outlook

The AUD/JPY daily chart delineated the pair sliding below the 20-day EMA, hitting fresh weekly lows at 95.40. That said, the pair bias shifted from upward biased to neutral as sellers began gathering momentum, as shown by the Relative Strength Index (RSI) crossing below the 50-midline into bearish territory. Therefore, an extension towards fresh weekly lows on the AUD/JPY is on the cards.

Near term, the AUD/JPY is downward biased, as portrayed by the four-hour chart. Higher rates in the US spurred a sell-off in US equities, meaning that flows seeking safety are increasing. Therefore, the AUD/JPY could be headed to the downside due to the Japanese yen's safe-haven status, opening the door for a test of the 200-EMA.

Hence, the AUD/JPY first support would be the 200-EMA at 95.37. Break below will expose the S1 daily pivot at 95.20, followed by the S2 pivot point at 94.91, and then a challenge of the September 2022 low at 94.76.

AUD/JPY Key Technical Levels