The Australian Dollar (AUD) trimmed some of its last week’s gains versus the Japanese Yen (JPY), which dropped 0.05% on Monday. However, as the Tuesday Asian session begins, the AUD/JPY hovers at around 95.01, unchanged.
From a daily chart perspective, the AUD/JPY is neutral to upward biased. Still, price action during the last couple of days suggests the cross-currency pair is headed for a correction, as it formed a ‘bearish-harami’ candlestick pattern formed by an inverted hammer and a doji. Hence, the cross-first support would be the 95.00 figure, followed by the top of the Ichimoku Cloud (Kumo) at 94.74, followed by the Tenkan-Sen line at 94.56, and followed by the Kijun-Sen at 94.17.
Short-term, the cross-currency pair has fallen below the Kumo, suggesting the pair turned bearish bias. To resume its downtrend, AUD/JPY sellers must drag prices below the September 18 swing low of 94.78. That would reaffirm the bearish bias and open the door to test the September 14 swing low of 94.50, followed by an upslope support trendline around 94.20/40. A decisive break and the 94.00 threshold would be next.
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