AUD/JPY Price Analysis: Double-top target at 83.10 reached, hover around 83.30

• AUD/JPY slides during the day. Almost 1% on risk-aversion through all the financial markets.
• AUD/JPY Technical Outlook: The double-top chart pattern target was reached, but downward pressure remains.

The AUD/JPY slides sharply during the day, down 0.9%, is trading at 83.30 at the time of writing. Risk-off market mood spurred a flight to safe-haven currencies, with the Japanese yen and the Swiss franc prospects rising, whereas the risk-sensitive currencies like the AUD and the NZD slump during the day.

Furthermore, major US equity indices slide between 0.44% and 0.80% during the New York session, as market participants await US consumer inflation figures on Wednesday.

AUD/JPY Price Forecast: Technical outlook

Daily chart: Double-top 83.10 target reached

The AUD/JPY daily chart depicts the pair reached the double-top pattern target at 83.10, that confluences with the 50% Fibonacci retracement around that area. The AUD/JPY bounced off that area towards the 83.20s area, where it currently resides, as the AUD/JPY traders wait for fresh impetus to resume the upward bias, as depicted by the daily moving averages (DMA’s) below the spot price.

4-hour chart

Zooming into the 4-hour chart, it depicts that, albeit reaching the double top’s target, the pair has some selling pressure left, as witnessed by the simple moving averages (SMA’s) residing well above the spot price. Further, the Relative Strength Index (RSI) at 31 just exited oversold levels, meaning that AUD/JPY sellers could still aim for a correction beyond the 83.00 figure.

A break beneath the latter would expose the 82.00 psychological support that, once breached, would expose the October 6 high at 81.41.

On the flip side, a break above 83.71 could pave the way for further gains. The first resistance would be the 84.00 figure, followed by the so-called neckline of the double top, around 84.61, followed by the 100-SMA around the 85.00 area.