The AUD/JPY pair has witnessed some significant offers near Tuesday’s high of 83.18 as the uncertainty has shot up and the risk-off mood may underpin the safe-haven appeal. US Secretary of State Antony Blinken has abandoned the meeting with Russian Foreign Minister Sergey Lavrov as the former claims that Moscow has not stopped an invasion of Ukraine despite various sanctions threats and peace-making suggestions. Therefore, meeting with a Russian diplomat makes no sense anymore.

On an hourly scale, AUD/JPY has been trading in a range of 82.33-83.34 since Thursday. The cross has tried to augment the range breakout by slipping below 82.33 in the early Asian session. However, the asset has attracted significant bids later and a follow-up buying has turned the breakout into a fakeout.

Usually, a fakeout seems more decisive and confident to breach the range on the opposite side. This may underpin bulls for further upside ahead.

The 50-period and 200-period Exponential Moving Averages (EMA) are trading flat, showing no signs of a clear bull ride yet.

While, the Relative Strength Index (RSI) (14) has reclaimed its previous oscillating range of 40.00-60.00, which indicates that the asset is back into the woods but with a bullish bias.

Now, bulls are eyeing the 50- EMA, which is trading at 82.70. After surpassing the 50-EMA, AUD/JPY may rally towards Monday’s high at 83.05 and Friday’s high at 83.33 respectively.

On the flip side, bulls could lose their grip if the cross slips below 82.33 and additional losses could be witnessed toward Tuesday’s low at 82.12 ahead of February 15 low at 81.90.

Bears To Dominate AUDJPY Below 84.0

Feb 23 2022