- The AUD/JPY trendline suggests a neutral to bearish bias as the pair looks to break the Kijun-Sen line at 95.32.
- A bearish harami formation with a hanging man indicates momentum for potential sellers and increases the risk of a pullback.
- Mixed oscillators and bearish technical indicators, including a bearish Chikou range, suggest potential losses for AUD/JPY in the near term.
AUD/JPY is seeing minor losses of 0.07% after touching a daily low of 94.86, but late risk momentum has boosted the Australian dollar (AUD) towards the current exchange rate. AUD/JPY is trading at 95.30, down 0.05%.
AUD/JPY Price Analysis: Technical Outlook
In the near term, the outlook for AUD/JPY is neutral to bearish after the pair struggled to break above the Kijun-Sen line at 95.32 over the past few days. Aldo, a bearish harami formation with a hanging man, suggests that sellers are gaining momentum.
This means that the first support for AUD/JPY will be 95.00, followed by the Tenkan-Sen at 94.78. A breach of these levels would reveal a Kuo peak at 94.50/60, followed by 94.00.
Conversely, if AUD/JPY regains the Kijun-Sen at 95.32, further resistance would appear at the daily high of 21 October at 95.7, before breaking above the 96.00 mark.
The relative strength index (RSI) oscillator shows the pair as bullish; however, the three-day rate of change (RoC) shows that buying pressure is waning, opening the door for a pullback.
Thus, technical signals suggest that AUD/JPY could be headed down, with the Kijun-Sen standing above the Tenkan-Sen, price action below the former and the Chikou range turning bearish; AUD/JPY is headed down. This, along with mixed oscillators, could pave the way for AUD/JPY losses.