AUD/JPY Price Analysis: Plunges after RBA’s dovish hold, technicals hint downside risks remain
|- AUD/JPY dipped below key support levels, like the Kijun-Sen, and Senkou Span.
- The Chikou Span crossing below price action, and narrowing distance between Tenkan and Kijun-Sen, signals bears are gaining traction.
- If AUD/JPY buyers reclaim 97.00, a rally to 98.00 is on the cards.
The AUD/JPY began Wednesday’s Asian session with a negative tone after registering losses of more than 1% on Tuesday. This is courtesy of the Reserve Bank of Australia (RBA), which held rates unchanged, though market participants perceived the decision as a “dovish hold,” so Aussie Dollar (AUD) sellers exerted downward pressure on the currency. At the time of writing, the pair is exchanging hands at 96.36, down 0.02%.
Despite registering solid losses, the AUD/JPY remains neutral to upward bias, but downside risks are emerging. The Chikou Span is crossing below the price action, turning bearish, and the distance between the Tenkan and Kijun-Sen is narrowing. If the pair slides below the November 10 low of 96.28, that will exert downward pressure on the pair. The next support would be the top of the Ichimoku Cloud (Kumo) at around 95.15/25, followed by the bottom of the Kumo at 94.95.
On the flip side, in the outcome of the AUD/JPY reclaiming the 97.00 figure, buyers could regain control. The next spotted resistance level is the Tenkan-Sen at 97.40, and if the pair gains additional momentum, it could rally toward the 98.00 figure.
AUD/JPY Price Analysis – Daily Chart
AUD/JPY Technical Levels
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.