AUD/JPY Price Analysis: Bulls reclaim 82.00 though face strong resistance ahead
- The Australian dollar advances vs. the Japanese yen in a risk-off market mood.
- AUD/JPY is neutral biased, but a daily close above the 50-DMA would exert upward pressure on the pair.
The AUD/JPY climbs during the day as the North American session ends, despite a risk-off market mood, which usually favors the safe-haven status of the Japanese yen. At the time of writing, the AUD/JPY is trading at 82.00.
US equity indices finished mixed, led by losses of the S&P 500 and the Nasdaq Composite, down 0.37% and 0.84%, respectively. Meanwhile, the Dow Jones finished flat.
AUD/JPY Price Forecast: Technical outlook
On Monday’s overnight session, the AUD/JPY began the week on the right foot, advancing from daily lows up to daily highs. AUD/JPY price action in the last two days suggests indecision. However, a daily close above the 50-day moving average (DMA) could spur a jump towards the confluence of the 100 and the 200-DMA lying in the 82.40-50 range, respectively.
That said, a breach of the abovementioned confluence would expose AUD/JPY’s January 20 high at 82.97, which, once broken, will challenge a five-month-old downslope trendline around the 83.40-60 range.
On the flip side, AUD/JPY’s first support would be a February 4 daily low at 81.29, stalling downward moves for four straight days. A downward break of it could pave the way for further losses. The next support would be January 24 swing low at 80.69, followed by January 28 low at 80.36.
