- The AUD/JPY advanced on Tuesday, despite a pessimistic market sentiment.
- From a daily chart perspective, the AUD/JPY is neutral biased, in a narrow range.
- AUD/JPY Price Analysis: Favors bulls above 94.40; otherwise, a break below 93.90 keeps bears in charge.
The AUD/JPY edges lower as the Asian Pacific session begins, spurred by a risk-off impulse spurred by a US inflation data release on Wednesday. That alongside recession fears reignited by Micron, a US semiconductor company, says company profits would be at the low end or below its guidance. At the time of writing, the AUD/JPY is trading at 94.07, slightly down 0.08%.
AUD/JPY Tuesday’s price action opened near the day’s highs, reached at 94.39 after the cross-currency hit 93.90, its daily low.
AUD/JPY Price Analysis: Technical outlook
Analyzing the AUD/JPY daily chart, the pair’s bias is still neutral-to-upwards, even though all the daily EMAs are below the spot price. Nevertheless, the AUD/JPY market structure indicates the cross-currency as downward biased, as successive series of lower highs and lows emerged after reaching its YTD high at 96.88. Therefore, the AUD/JPY is neutral biased, with neither buyers nor sellers being in total control.
Zooming into the 1-hour scale, the AUD/JPY is range-bound, within the boundaries of 93.90-94.40. Meanwhile, the Relative Strength Index (RSI) is pushing towards the 50-midline, meaning it has no clear bias.
If the AUD/JPY breaks the top of the range at 94.40, its first resistance would be the 95.00 figure. Once cleared, the next resistance would be the July 27 daily high at 95.70, followed by 96.00. On the flip side, a breach of 93.90 would send the pair sliding towards the 100-hour EMA at 93.50. A decisive break will expose the 200-hour EMA at 93.05.
AUD/JPY Key Technical Levels
