AUD/JPY Price Analysis: To fall below 95.00 before re-testing YTD highs around 97.00
- The AUD/JPY retreated from multi-year highs but remained up by 1.12% in the week.
- Wall Street’s finished with hefty losses, and Asian futures are poised to a lower open.
- AUD/JPY Price Forecast: The pullback from around 97.00 might go as lower as 94.00, before re-testing YTD highs.
AUD/JPY plunged more than 1% on Thursday, courtesy of a downbeat sentiment and appetite for safe-haven assets, as worldwide central banks shifted to a restrictive monetary policy, which caused a jump in bond yields. At 95.33, the AUD/JPY is retreating from multi-year highs, down 0.05% as Friday’s Asian session begins.
Sentiment remains negative; safe-haven peers gained
US equities finished Thursday’s session with losses, between 1.94% and 2.75%. Worries about global central banks restricting access to money might cause an economic slowdown and keeps market players uneasy, flying towards safe-haven assets. On Thursday, the European Central Bank (ECB) announced that it would hike rates in July at a slower rhythm than expected by some ECB hawks.
Recapping the AUD/JPY Thursday’s price action, the cross opened near the daily highs at around 96.80 and fell as soon as Tokyo’s session began. The AUD/JPY dipped towards a fresh two-day low at 95.29 and broke the 1-hour 50 and 100-simple moving averages (SMAs), each sitting at 96.07 and 95.46, respectively.
AUD/JPY Price Forecast: Technical outlook
The AUD/JPY daily chart depicts the pair as upward biased. Thursday’s pullback might extend towards the May 5 high at 94.02, as the Relative Strenght Index (RSI) at 64.17 is aiming lower. Nevertheless, once that area is tested, the AUD/JPY might resume its upward biased.
If that scenario plays out, the AUD/JPY first support would be the 95.00 psychological level. Once cleared, the following support would be the June 7 low at 94.80, followed by the above-mentioned 94.02. Once there, the AUD/JPY buyers could resume the uptrend and challenge the YTD high near 97.00.
