The AUD/JPY slid for the second consecutive day on Wednesday, as the Asian Pacific session is about to begin, courtesy of a dismal market mood as the Russia-Ukraine conflict escalates. Peace talks, according to Moscow, have failed to achieve a breakthrough as Russia intensifies its attacks on Ukraine. At 91.54 off the weekly highs, around 93.12, reflects the risk-off mood in the markets.

Perhaps the main bearish factor for AUD/JPY at this point is the fact its already come so far in such a short time and is thus looking overbought. A lack of meaningful economic events in Australia and Japan this week mean focus will very much remain on geopolitics, risk appetite and global yields, with any pullback towards support in the form of 2017 highs around 90.00 likely to be viewed as a buying opportunity, with a target (perhaps) of 100.00.

The last two days’ AUD/JPY price action has achieved to record a series of lower highs and lower lows, so the pair is downward biased in the near term. It is worth noting that Wednesday’s close at 91.45 was lower than Monday’s 91.53 low, confirming the aforementioned.

That said, the AUD/JPY might correct before resuming upwards. So the AUD/JPY first support would be  91.50. A sustained break would expose 91.00. Once cleared, the next demand zone would be Pitchfork’s central-parallel line’s confluence with the 90.00 mark and then the 89.00 figure.

Apart from that, a marginal slippage in the Japanese Unemployment Rate managed to activate minor profit-booking in the counter. The Statistics Bureau of Japan reported the Unemployment Rate at 2.7%, lower than the previous print and market estimate of 2.8%.

AUDJPY Providing Sentiments of Recovery Above 89.65

Mar 31 2022

Take Profit +3.60%

Holding time 18d9hr

91.008

Entry price

94.286

Take profit price