Confined in the 93.00-75 range despite RSI at overbought levels

  • AUD/JPY starts the Asia-Pacific session up 0.23%.
  • A lackluster market mood weighed on the AUD, but the surge in USD/JPY capped AUD/JPY’s losses on Monday.
  • AUD/JPY price prediction: In consolidation, waiting for a new catalyst.

The Aussie dollar clings to gains as the Asia-Pacific session begins, although it remains in choppy trading in the 93.00-70 range over the past five days. At the time of writing, the AUD/JPY is trading at 93.51, up around 0.23% at the time of writing.

Risk sentiment, despite a weaker JPY, weighs on the AUD

US stocks ended Monday’s session mixed, reflecting market sentiment. In the FX complex, the greenback was the session winner, while the antipodes and safe-haven peers were the laggards. Of note, USD/JPY hit a 20-year high above the 127.00 mark, capping AUD/JPY’s losses.

During the Asian session on Monday, AUD/JPY opened around 93.40 before surging to the daily high at 93.71, followed by a 60 pip drop to 93.07, a level broken without success over the past three days.

AUD/JPY Price Prediction: Technical Outlook.

The AUD/JPY daily chart shows choppy trading in the pair, consolidating in the 93.00-75-0/80 range over the past five trading days. It also shows a negative divergence between the price action and the Relative Strength Index (RSI), with the AUD/JPY recording successive sets of higher highs, unlike the RSI, recording lower highs.

Meanwhile, the 1-hour AUD/JPY chart paints the pair as biased higher and aims to retest Monday’s 93.71 highs, which if broken would open the door for a test of 94. .00. However, he would encounter obstacles on his way.

AUD/JPY’s first resistance would be the confluence of the R1 daily pivot and a five-day downtrend line around 93.65. A breakout would expose the April 13 daily high at 93.86, followed by the R2 daily pivot at 94.00.

On the downside, the first AUD/JPY support would be the confluence of the 50 and 100 simple moving averages (SMA) around the 93.42-43 area. A decisive break would expose the daily pivot at 93.37, followed by the daily low of April 18 at 93.07, close to the S1 daily pivot at 93.01.