AUD/JPY Price Analysis: Breaks below 92.00 amid a risk-off market mood

• During the week, the AUD/JPY record losses of 1.29%.
• The market sentiment remains sour as Asian equities are set to open lower on China’s coronavirus woes and global central bank tightening.
• AUD/JPY Price Forecast: Ready to test the MTD lows around 90.11

The Australian dollar slumped sharply on Monday’s session, down some 1.23%, a 200-pip fall, but recovered late as the New York session waned. As Tuesday’s Asian Pacific session begins, the AUD/JPY is trading at 91.83, shy of the 92.00 mark at the time of writing.

US equities finished with an upbeat tone, lifted by the Nasdaq Composite. Asian futures point to a lower open, weighed by China’s coronavirus outbreak issues as fears of wider curbs in Beijing alarms market players, already fretting about a global economic slowdown. Meanwhile, the Ukraine-Russian woes appear to have taken a backseat of late, as worries about global central banks tightening have taken the front stage.

On Monday’s session, the AUD/JPY opened near last Friday’s lows and, without issuing any warning, extended its falls which accelerated as the Europan/North American sessions overlapped, reaching a daily low at 91.11. However, the shift in market mood on Wall Street lifted the AUD/JPY shy of the 92.00 area.

AUD/JPY Price Forecast: Technical outlook

The AUD/JPY daily chart depicts the pair as upward biased despite the recent fall. However, once AUD/JPY bears broke below 92.40, it could be expected sideways or further downward pressure on the pair, as it broke the latest market structure. Also, the Relative Strength Index (RSI), about to close below the 50-midline, will enter the bearish territory, so a move towards March’s 31 daily low at 90.76.

In the AUD/JPY’s 1-hour chart, its first support would be April 25 daily low at 91.11. Once cleared, the next demand zone would be the S1 daily pivot at 90.94, followed by the March 31 cycle low at 90.76. A break of the latter would expose September’s 2017 lows at 90.30, followed by the 90.00 figure.

Key Technical Levels