- AUD/JPY advanced despite a risk-off mood in the FX complex, up 0.01%.
- AUD/JPY Technical Outlook: Bias to the downside as long as it remains below 82.60.
On Wednesday, the Australian dollar offsets losses against the underperforming Japanese yen during the American session. At the time of writing, the AUD/JPY it trades at 81.77.
Market sentiment in the FX complex is risk aversion. The Japanese yen has strengthened as the American session progressed. Meanwhile, risk sensitive currencies like AUD, NZD and CAD fall against those mentioned above.
AUD/JPY Price Forecast: Technical Outlook
During the overnight session for US traders, AUD/JPY meandered near 82.00 which it hadn’t reached since Jan 26, but failed to recapture the aforementioned. Thereafter, ample safe-haven flows into the JPY weighed on AUD/JPY, falling to the 200 hourly simple moving average (SMA) at 81.38.
AUD/JPY is skewed to the downside as shown by the daily moving averages (DMAs), which are above spot price in an orderly bearish fashion. To the downside, the first support would be the daily low of February 1 at 80.90. A break of the latter would expose the Jan 24 daily low at 80.69, followed by the yearly low at 80.36.
Conversely, in the event of an AUD/JPY move higher, the first resistance would be the 50-day DMA at 81.89. If the above mentioned level gives way to the AUD bulls, the next resistance would be 82.00, followed by the confluence of the 100 and 200 DMA which lies within the 82.40-46 range.
Technical levels
Source: Fx Street
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