AUD/JPY Price Analysis: Loses traction near 94.50, eyes on 95.00
- AUD/JPY remains on the defensive around the 94.50 mark.
- The Relative Strength Index (RSI) reaffirms the non-directional movement of the cross.
- The crucial resistance is near 95.00; 94.00 area acts as a key support level.
The AUD/JPY pair struggles to gain any meaningful traction on Tuesday and remains on the defensive around 94.50 in the early Asian session.
From the technical perspective, AUD/JPY trades below a downward-sloping channel on the four-hour chart. The Relative Strength Index (RSI) holds between 40-60, reinforcing the non-directional movement for the AUD/JPY pair.
The immediate resistance level is seen at 94.80, portraying the 50-hour Exponential Moving Average (EMA). The cross will meet the crucial barrier near 95.00. This level is a confluence of a psychological mark, 100-hour EMA and the upper boundary of the descending channel.
The break above the latter could see the cross test 95.40 (High of July 14), followed by 96.15 (High of July 23). The additional upside filter to watch is 96.50 (High of July 27).
On the downside, the 94.00 area acts as a key support level for the cross, representing a psychological level and a low of July 17. Any meaningful follow-through selling will drop to 93.30 (Low of July 12) en route to 92.60 (the lower limit of the descending channel).
AUD/JPY four-hour chart
