AUD/JPY Price Analysis: Probes the 200-DMA around 92.00

• Risk aversion weighed on the Australian Dollar, bolstering the safe-haven status of the Japanese Yen.
• AUD/JPY Price Analysis: Break below the 200-day EMA to exacerbate a fall towards 90.00.

The Australian Dollar (AUD) losses ground against the Japanese Yen (JPY) amid a risk-off impulse as the prospects for a recession in the United States (US) increased, blamed on a worst-than-expected US ISM PMI, and flashed manufacturing activity is deteriorating. At the time of writing, the AUD/JPY is trading at 92.16.

AUD/JPY Price Analysis: Technical outlook

The AUD/JPY daily chart portrays the pair trading within a descending channel, with the 20, 50, and 100-day Exponential Moving Averages (EMAs) sitting above the exchange rate, further confirming the downtrend. Additionally, the AUD/JPY Thursday close below the former weekly low of 92.14, has paved the way for additional losses.

Oscillators with the Relative Strength Index (RSI) at bearish territory, and the 9-day Rate of Change (RoC) aiming downwards, suggests bears are gathering momentum. Therefore, the AUD/JPY path of least resistance is downwards.

The AUD/JPY key support levels are the 200-day EMA at 91.99, followed by the October 13 swing low of 90.83, followed by the August 2 pivot low of 90.52, ahead of the 90.00 figure.

As an alternate scenario, the AUD/JPY first resistance would be the 93.00 figure. Break above will open the AUD/JPY path to the confluence of the 20 and 100-day EMA at 93.40/60, ahead of the 50-day EMA at 93.78

AUD/JPY Key Technical Levels