AUD/JPY Price Forecast: Clings To Gains Below 97.00 As Downtrend Remains

By Christian Borjon Valencia of FX Street

Monday, August 12, 2024 6:40 PM EDT

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AUD/JPY forms a 'shooting star' pattern, signaling potential for further downside if 96.15 is breached.
Key support levels include 96.00 and 95.00, with deeper losses targeting the Tenkan-Sen at 94.43.
If buyers reclaim 97.85, resistance lies at 98.00, with further gains challenging 98.74.

The AUD/JPY advances during the day yet retreats after hitting a daily high of 97.85 and sitting below 97.00. At the time of writing, the cross-pair trades at 96.97 and posts gains of 0.68%.

AUD/JPY Price Forecast: Technical outlook

The AUD/JPY downtrend remains in play despite the ongoing leg-up that saw the Aussie strengthen above the 97.00 figure. Momentum favors sellers, though in the short term, the Relative Strength Index (RSI) is aiming below its neutral line, indicating buyers are stepping in.

Nevertheless, the August 12 price action formed a ‘shooting star’, usually a bearish candle followed by a daily close below the low of 96.15, which could pave the way for further losses.

In that outcome, the AUD/JPY first support would be the 96.00 psychological mark, ahead of the 95.00 figure. Further losses lie beneath the Tenkan Sen at 94.43.

Conversely, if AUD/JPY climbs past 97.85, buyers could challenge the 98.00 mark. Further gains are seen above the confluence of the Kijun-Sen and Senkou Span B at 98.74.

AUD/JPY Price Action – Daily Chart

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