AUD/JPY Price Analysis: Stays depressed below 90.00 ahead of BoJ but bulls keep the reins
- AUD/JPY struggles to defend the corrective bounce off seven-week low.
- Ascending support lines from early January 2022 challenge bears amid nearly oversold RSI (14).
- Buyers need validation from two-month-old previous support line.
AUD/JPY licks it wounds around 89.70 during Friday’s Asian session as the cross-currency pair traders await the Bank of Japan (BoJ) Monetary Policy Meeting announcements, after refreshing a seven-week low the previous day.
Also read: Bank of Japan Preview: Kuroda’s and ultra-loose policy farewell
In doing so, the pair consolidates the previous day’s corrective bounce of an upward-sloping support line from late January 2022, around 89.50, amid bearish MACD signals. However, the nearly oversold RSI (14) challenges the AUD/JPY sellers from refreshing the multi-day bottom.
If at all the quote breaks the 89.50 support, the ascending support line connecting lows of late January 2022 and lows marked during the last December could act as the last defense of the AUD/JPY buyers, around 88.70.
Alternatively, recovery moves remain elusive unless the pair trades below the previous support line from early January 2023, close to 90.40 at the latest. That said, the 90.00 round figure restricts immediate upside of the pair.
Overall, AUD/JPY remains bullish unless the pair breaks the multi-month-old support line near 88.70.
AUD/JPY: Daily chart
Trend: Limited downside expected