Tuesday’s price action for the AUD/JPY showed the pair extended its fall for the second straight day, after last week’s rally of 3%. However, increasing tensions between Russia-Ukraine, keep market players downbeat. At the time of writing, the AUD/JPY is trading at 84.15.

The global equity market extends its losses in the week. In the FX space, risk-sensitive currencies, particularly the AUD, collapsed vs. most G8 currencies.

The price action in the AUD/JPY depicts the pair as upward biased, despite falling for two consecutive days. It is worth noting that the 50-day moving average (DMA) at 82.75 is rolling over the 100-DMA at 82.74, in a bullish order, with the shorter time-frame MAs above the 200-DMA at 82.25.

Tuesday’s daily low was 83.80 and pierced a three-month-old downslope trendline, previous resistance-turned-support, which pushed the pair above the 84.00 mark by the end of the North American session.

That said, the AUD/JPY first resistance would be January 5 high at 84.30. Breach of the latter would expose Pitchfork’s mid-line between the top and the 50% parallel line, around 85.00, followed by March 7 daily high at 85.50 and followed by the confluence of May 10. 2021, and Pitchfork’s top trendline around 85.80-86.00.

On the flip side, it would turn bearish in the near term if AUD/JPY trades below 83.00.

Taking a look at our short-term oscillators, we see that the RSI hit its 50 line from underneath and ticked down again, while the MACD, although positive, lies below its trigger line, pointing south as well. Both indicators add to the view that yesterday’s retreat may continue for a while more before, and if, the bulls decide to take charge again.

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