The AUD/JPY retreats as the Asian session begins, some 0.06%, following Wednesday’s gains of 1.09%. at the time of writing, the AUD/JPY is trading at 88.68, below the week’s high at 88.82, and also 20 pips under the 20-day Exponential Moving Average (EMA).

AUD/JPY Price Action

From a daily chart perspective, the AUD/JPY failed to hurdle solid resistance at the 20-day EMA and at March’s 22 high of 89.00. Oscillators turned flat at bearish territory, suggesting that sellers are lurking around current exchange rates. Additionally, the Rate of Change (RoC), albeit bullish, is at the mercy of Thursday’s price action. Therefore, sudden shifts in market sentiment and the AUD/JPY could reverse its course.

Short term, the AUD/JPY is hovering around the 100-EMA at 88.68, slightly above the central pivot point. After the AUD/JPY crossed above the 20-EMA, the pair registered gains of 1.41%. However, the Relative Strength Index (RSI) is shifting downward, albeit at bullish territory, while the Rate of Change (RoC) portrays that buying pressure is waning. The AUD/JPY could print a leg-down before testing 89.00 and beyond.

Hence, the AUD/JPY first support would be the pivot point at 88.42, followed by the confluence of the 50/20-EMAs, and the S1 pivot point at around 87.95/88.02. Once cleared, the pair could dive to the S1 daily pivot at 87.28

On the upside, the AUD/JPY could test the 200-EMA once it clears 89.00 and the R1 daily pivot at 89.16. The next resistance would be the 200-EMA at 89.58.