AUD/JPY Price Analysis: Hovers around 88.00 after hitting weekly lows of 87.40s

• Dampened sentiment kept the AUD/JPY trading in negative territory.
• AUD/JPY Price Analysis: Double bottom could be forming in the daily chart, targeting the 100-DMA around 92.41.

On Tuesday, the AUD/JPY reached a fresh two-week low around 87.41, though it finished the session around 88.07, extending its losses to four consecutive days after testing the 20-day Exponential Moving Average (EMA) around 90.92 on December 28. As Wednesday’s Asian session begins, the AUD/JPY is trading at 88.12.

AUD/JPY Price Analysis: Technical outlook

The AUD/JPY daily chart suggests the cross-currency as neutral-to-downward biased, though it should be said that a double bottom surfaced at around the 87.00 mark. The Relative Strength Index (RSI) remains in bearish territory but its slope shifted flat, while the Rate of Change (RoC) shows that selling pressure is waning.

If the AUD/JPY climbs above the 20-day EMA at 90.07 and clears the December 28 daily high at 91.05, the double bottom would be confirmed. Therefore, the AUD/JPY’s next resistance would be the confluence of the 50 and 200-day EMA around 91.60, followed by the 92.00 figure, ahead of the 100-day EMA at 92.41.

As an alternate scenario, the AUD/JPY first support would be the 88.00 mark. Break below will expose December’s low around 87.01, followed by March’s 15 swing low of 84.59.

AUD/JPY Key Technical Levels