AUD/JPY Price Analysis: Records the fifth new YTD high at 90.93 amir a risk-off sentiment
- The AUD/JPY finished Wednesday’s trading session with gains of 0.73%.
- Risk-aversion in the financial markets was not an excuse for the Aussie to gain.
- AUD/JPY Price Forecast: UJpward biased, though due to overbought conditions in the RSI, might correct lower before resuming upwards.
The AUD/JPY, one of the FX space risk barometers, rallies for seven consecutive days amidst a risk-off market mood in global equities, as portrayed by US stock indices which recorded losses between 1.29% and 1.49%. At the time of writing, the AUD/JPY is trading at 90.79
Factors like the Russia-Ukraine crisis and renewed worries of global inflation dampened the market sentiment. Ukrainian President Volodymyr Zelesnkyy called for more pressure on Russia as discussions stagnate, while Russia continues its airstrikes in the port city of Mariupol. Linked to this, US President Joe Biden is on his way to a two-day NATO summit in Brussels.
Overnight, the AUD/JPY seesawed around the 89.90-90.50 area but late in the North American session reached a new YTD high at 90.93.
AUD/JPY Price Forecast: Technical outlook
The AUD/JPY is upward biased. Despite the steepness of the rally, which could suggest that the AUD/JPY might be subject to a correction, the next resistance would be 91.00. Once cleared, the AUD/JPY following supply zone would be Pitchfork’s mid-parallel line between the top and the central ones, around 92.00, followed by the 93.00 mark.
On the flip side, the AUD/JPY first support will be the 90.00 mark. If that scenario plays out, the AUD/JPY nest support would be 89.00, followed by the March 21 daily high at 88.50.
