AUD/JPY Price Analysis: Uncertainty lingers as doji emerges shy of the 94.00 figure
- AUD/JPY support levels to watch are the August 9 low at 93.52, the August 8 low at 92.89, and Kumo’s bottom edge at 92.78.
- AUD/JPY upside barriers include the 94.00 psychological level, Kijun-Sen at 94.05, Tenkan-Sen at 94.36, and Kumo’s upper edge around 94.90/98.
AUD/JPY remains undecisive as Wednesday’s price action printed a doji; simultaneously, the Tenkan-Sen crossed above the Kijun-Sen, a bullish signal that warrants further upside. Nevertheless, price action inside the Ichimoku Cloud (Kumo) would cap AUD/JPY movement. The AUD/JPY changes hands at 93.80, almost flat as the Asian session begins.
AUD/JPY Price Analysis: Technical outlook
From a technical perspective, the AUD/JPY is set to remain sideways, as price action lies inside the Kumo. But after three days of consecutive gains, the last one formed a doji, suggesting that neither buyers nor sellers are in charge, after breaking a support trendline drawn from year-to-date (YTD) lows of 86.06.
Given the backdrop, the AUD/JPY could test the lows of the Kumo, despite upside risks remaining. The AUD/JPY would test the August 9 daily low of 93.52. A breach of the latter would expose the August 8 daily low of 92.89, followed by the bottom of the Kumo at 92.78.
On the other hand, if AUD/JPY reclaims 94.00, the pair could test the top of the Kumo, but first, it would need to clear key resistance levels. The first resistance would be the Kijun-Sen and Tenkan-Sen levels, each at 94.05 and 94.36, followed by the top of the Kumo at 94.90/98.
AUD/JPY Price Action – Daily chart
