AUD/JPY Price Analysis: Portrays head-and-shoulders bearish pattern on softer Australia data
- AUD/JPY drops 50 pips as Australia inflation, employment numbers disappoint Aussie buyers.
- Looming bear cross on MACD adds strength to the downside bias.
- 100-EMA, 200-EMA challenge bears before directing them to monthly low.
AUD/JPY lures sellers with an interesting head-and-shoulders bearish chart pattern following the downbeat prints of Australia’s inflation and employment numbers during early Thursday. That said, the cross-currency pair dropped nearly 50 pips to refresh an intraday low of around 92.00 by the press time.
Also read: AUD/USD plummets below 0.6900 on downbeat Aussie inflation, employment data
Not only the weekly bearish chart formation but the looming bear cross on the MACD also highlights the pair’s importance for the sellers.
However, a clear downside break of the stated pattern’s neckline, around 91.95 by the press time becomes necessary to confirm the theoretical south-run towards the 90.70 levels.
It should be noted that the 100 and 200-bar Exponential Moving Averages (EMAs) could challenge the AUD/JPY bears around 92.00 and 91.75 respectively while the monthly low surrounding 90.20 and the 90.00 round figure may please the sellers past the theoretical target.
Alternatively, recovery moves remain elusive unless the quote remains below the recent swing high of 92.67.
Even so, the monthly peak of 93.06 and the mid-December 2022 swing high of 93.35 could probe the AUD/JPY bulls.
In a case where the AUD/JPY price remains firmer past 93.35, the 94.00 round figure and October 2022 high near 95.75 will be in the spotlight.
AUD/JPY: Four-hour chart
Trend: Further downside expected
Author
Anil Panchal
FXStreet
Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.
