AUD/JPY Price Analysis: Sentiment improvement spurred a jump towards 93.50s

• Upbeat in risk sentiment weighed on the Japanese Yen and bolstered the Australian Dollar.
• US Federal Reserve Chair Jerome Powell gave the green light for lower-sized rate hikes.
• AUD/JPY Price Analysis: Upward biased, could print a fresh weekly high above 94.00.

The AUD/JPY advanced sharply on Wednesday amid an improved market sentiment spurred by the Federal Reserve (Fed) Chair Jerome Powell. He said that it makes sense to slow the speed of rate hikes while adding the Fed has made substantial progress towards a “sufficiently restrictive policy.” Therefore, the AUD/JPY bounced off the 200-day Exponential Moving Average (EMA) and rose almost 1%. At the time of writing, the AUD/JPY is trading at 93.64.

AUD/JPY Price Analysis: Technical outlook

On Thursday, the AUD/JPY daily chart portrays the cross as neutral-to-upward bias after bouncing at the 200-day Exponential Moving Average (EMA) at 92.79, reclaiming the 93.00 figure. As of writing, the AUD/JPY is pressuring the 50-day EMA at 93.67, which, if cleared, could drag the cross above the 94.00 mark toward the 100-day EMA at 94.29.

If that scenario is achieved, the next resistance would be November 16 weekly high at 94.65, followed by the November 8 swing high at 95.19.

Short-term, the AUD/JPY recovered some ground, particularly on Wednesday, after hitting a weekly low of 92.14, climbing more than 100 pips. Should be noted that the cross faces solid resistance at the 200-EMA at 93.68, but as the Relative Strength Index (RSI) is in bullish territory, the AUD/JPY might surpass the latter on its way toward the week’s high of 94.05.

AUD/JPY key resistance levels are at the weekly high of 94.05, followed by the R1 daily pivot at 94.19 and the R2 pivot point at 94.66. On the other hand, the AUD/JPY first support would be the 100-EMA at 93.45. A breach of the latter will expose the daily pivot at 93.37, followed by the 50-EMA at 93.14, ahead of the 93.00 figure.

AUD/JPY Key Technical Levels