AUD/JPY Price Analysis: Plunges over 1% as bearish engulfing pattern emerges, 93.00 in sight for bears

AUD/JPY witnessed a significant drop, trading around 94.57 in the Asian session.
Bearish engulfing candlestick pattern on the daily chart signals potential further declines.
Key support and resistance levels are outlined amidst the prevailing bearish bias.

Christian Borjon Valencia FXStreet

AUD/JPY plunged more than 1% on Thursday as investors speculated the US Federal Reserve (Fed) could increase rates before the end of 2023, a headwind for risk-perceived currencies like the Aussie Dollar (AUD). Therefore, the cross-pair extends its losses and exchanges hands at around 94.57 as the Asian session begins.

From a daily chart perspective, the pair is neutral to downward biased; due to aggressive selling pressure mounting on Thursday, it formed a bearish engulfing candlestick pattern that comprises price action from the whole week. That said, the AUD/JPY could print new lows below the 94.00 figure.

The AUD/JPY first support would be the Ichimoku Cloud (Kumo) at around the 94.10/30 area, which, once cleared, would expose the psychological 94.00 mark. If that level is broken, the following demand area to test would be October 3, swing low of 93.01, before the pair slumps towards July 28, swing low of 91.79.

Conversely, if AUD/JPY stays above 94, the first resistance would be the Kijun-Sen at 94.97 before climbing above 95.00. If rallying above that level, up next would be the July 3 high at 96.83.

AUD/JPY Price Action – Daily chart

AUD/JPY Technical Levels

AUD/JPY

Overview
Today last price	94.58
Today Daily Change	-1.09
Today Daily Change %	-1.14
Today daily open	95.67

Trends
Daily SMA20	95.23
Daily SMA50	94.51
Daily SMA100	94.56
Daily SMA200	92.47

Levels
Previous Daily High	95.73
Previous Daily Low	95.37
Previous Weekly High	96.42
Previous Weekly Low	93.05
Previous Monthly High	96.92
Previous Monthly Low	93.59
Daily Fibonacci 38.2%	95.59
Daily Fibonacci 61.8%	95.51
Daily Pivot Point S1	95.45
Daily Pivot Point S2	95.23
Daily Pivot Point S3	95.09
Daily Pivot Point R1	95.81
Daily Pivot Point R2	95.96
Daily Pivot Point R3	96.18

Author

Christian Borjon Valencia

FXStreet

Markets analyst, news editor, and trading instructor with over 14 years of experience across FX, commodities, US equity indices, and global macro markets.

EUR/USD trims gains, back below 1.1800

EUR/USD now loses some upside momentum, returning to the area below the 1.1800 support as the Greenback manages to regain some composure following the SCOTUS-led pullback earlier in the session.

GBP/USD off highs, recedes to the sub-1.3500 area

Following earlier highs north of 1.3500 the figure, GBP/USD now faces some renewed downside pressure, revisiting the 1.3490 zone as the US Dollar manages to regain some upside impulse in the latter part of the NA session on Friday.

Gold climbs to weekly tops, approaches $5,100/oz

Gold keeps the bid tone well in place at the end of the week, now hitting fresh weekly highs and retargeting the key $5,100 mark per troy ounce. The move higher in the yellow metal comes in response to ongoing geopolitical tensions in the Middle East and modest losses in the US Dollar.