AUD/JPY Price Analysis: Pair bounces back from 86.00 level as risk sentiments improve

AUD/JPY finds support as global banking liquidity crisis eases.
Fading Japanese Yen safe-haven demand provides relief to AUD/JPY.
RSI signals oversold conditions, suggesting a potential pullback.

The risk proxy AUD/JPY has fallen sharply after reaching the March high near the 92.00 psychological mark on a daily timeframe, as demand for the safe-haven Japanese Yen surged amid the global banking liquidity crisis.

Investors have returned to traditional safe-haven assets like the Yen instead of the US Dollar during this banking crisis, although recent efforts to alleviate the liquidity crunch have diminished the Yen's demand somewhat.

The risk-sensitive AUD/JPY pair bounced back after finding support and registering a new March low at the key psychological level of 86.00, which also intersects the multi-year ascending trendline starting from 2020. This level is likely to be the last line of support before entering uncharted territory.

Any upside gains are expected to be limited around the current quote price, with a multi-month tested support-turned-resistance at the 87.53 mark. The 21-Day Moving Average (DMA) and 50-DMA crossover is also exerting downward pressure on the pair. A convincing break above the 87.53 mark will face challenges from both DMAs sequentially.

Key resistance is placed at 90.86, followed by 2023 high at 93.17.

The Relative Strength Index (RSI) signals an oversold condition, suggesting that a pullback in the pair may be due.

AUD/JPY: Daily chart

EUR/USD flirts with daily highs, retargets 1.1900

EUR/USD regains upside traction, returning to the 1.1880 zone and refocusing its attention to the key 1.1900 barrier. The pair’s slight gains comes against the backdrop of a humble decline in the US Dollar as investors continue to assess the latest US CPI readings and the potential Fed’s rate path.

GBP/USD remains well bid around 1.3650

GBP/USD maintains its upside momentum in place, hovering around daily highs near 1.3650 and setting aside part of the recent three-day drop. Cable’s improved sentiment comes on the back of the Greenback’s irresolute price action, while recent hawkish comments from the BoE’s Pill also collaborate with the uptick.

Gold clings to gains just above $5,000/oz

Gold is reclaiming part of the ground lost on Wednesday’s marked decline, as bargain-hunters keep piling up and lifting prices past the key $5,000 per troy ounce. The precious metal’s move higher is also underpinned by the slight pullback in the US Dollar and declining US Treasury yields across the curve.

Crypto Today: Bitcoin, Ethereum, XRP in choppy price action, weighed down by falling institutional interest

Bitcoin's upside remains largely constrained amid weak technicals and declining institutional interest. Ethereum trades sideways above $1,900 support with the upside capped below $2,000 amid ETF outflows.

Week ahead – Data blitz, Fed Minutes and RBNZ decision in the spotlight

US GDP and PCE inflation are main highlights, plus the Fed minutes. UK and Japan have busy calendars too with focus on CPI. Flash PMIs for February will also be doing the rounds. RBNZ meets, is unlikely to follow RBA’s hawkish path.

Ripple Price Forecast: XRP potential bottom could be in sight

Ripple edges up above the intraday low of $1.35 at the time of writing on Friday amid mixed price actions across the crypto market. The remittance token failed to hold support at $1.40 the previous day, reflecting risk-off sentiment amid a decline in retail and institutional sentiment.