- AUD/JPY has been seesawing within a 60-pip trading range for the last couple of days.
- The AUD/JPY daily chart is neutral, while the hourly time-frame further cements the case for consolidation.
The AUD/JPY finished Wednesday’s session almost flat, forming a quasi dragonfly-doji, meaning that neither buyers/sellers dominated the trading session amidst a risk-on impulse. Factors like lower-than-expected US inflation and tempering tensions between China-Taiwan improved risk appetite. At the time of writing, the AUD/JPY is trading at 94.05, down 0.02%, as the Asian session begins.
AUD/JPY Price Analysis: Technical outlook
The AUD/JPY daily char chart illustrates the pair as neutral bias, with the 20 and 50-day EMAs meandering around the exchange rate, a reason to think that consolidation lies ahead. Further confirming the aforementioned, Wednesday’s price action printing a dragonfly-doji, indecision amongst AUD/JPY traders.
Switching towards a short-term picture, the AUD/JPY has been seesawing for the last couple of days, within the 93.80-94.40 area, with some candles breaching the aforementioned levels. Still, the price has returned to its “mean reversion” area.
Upwards, the AUD/JPY’s first resistance would be the August 10 high at 94.30. Once cleared, the next supply zone will be the weekly high at 94.43, followed by the psychologically 95.00 area. On the other hand, the AUD/JPY first support will be the 94.00 area. A breach of the latter will send the cross towards the 100-hour EMA at 93.72 (tested on August 10), followed by the August 10 daily low at 93.47.
AUD/JPY Key Technical Levels