AUD/JPY Price Analysis: To face downward pressure, as bearish harami emerges
|- AUD/JPY trendline suggests a neutral to downward bias as the pair struggles to break the Kijun-Sen line at 95.32.
- Bearish harami formation with a hanging man indicates potential sellers' momentum, heightening the pullback risk.
- Mixed oscillators and bearish technical indicators, including a bearish Chikou Span, hint at potential AUD/JPY losses in the near term.
AUD/JPY registers minuscule losses of 0.07% after touching a daily low of 94.86, but a late risk-on impulse boosted the Australian Dollar (AUD) toward the current exchange rate. The AUD/JPY is trading at 95.30, down 0.05%.
AUD/JPY Price Analysis: Technical outlook
In the near term, the outlook for the AUD/JPY is neutral to downward biased after the pair struggled to break above the Kijun-Sen line at 95.32 for the last couple of days. Aldo, a formation of a bearish harami with a hanging man, suggests sellers are gathering momentum.
That said, the AUD/JPY first support would be the 95.00 figure, followed by the Tenkan-Sen at 94.78. A breach of those levels would expose the top of the Kuo at 94.50/60, followed by the 94.00 figure.
Conversely, if AUD/JPY reclaims the Kijun-Sen, at 95.32, the next resistance would emerge at the October 21 daily high at 95.7, ahead of challenging the 96.00 mark.
Oscillator-wise, the Relative Strength Index (RSI) portrays the pair as bullish; however, the three-day Rate of Change (RoC) shows buying pressure is waning, opening the door for a pullback.
Hence, technical signals suggest the AUD/JPY might be headed downwards, with the Kijun-Sen standing above the Tenkan-Sen, price action below the former, and the Chikou Span turning bearish; the AUD/JPY is headed downwards. That, alongside mixed oscillators, could pave the way for AUD/JPY losses.
AUD/JPY Price Action – Daily chart
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.