AUD/JPY Price Analysis: Remains sidelined below 90.00 on Aussie jobs report, bears stay hopeful
- AUD/JPY remains mildly bid after mixed prints of Australia employment data for April.
- Convergence of 21-DMA, 50-DMA appears a tough nut to crack for buyers.
- Steady RSI directs sellers towards a four-month-old support line.
AUD/JPY consolidates the biggest daily loss in a week around 89.50 after the unclear signals from the Aussie jobs report for April were released early Thursday.
That said, Australia’s headline Unemployment Rate marched 3.9% forecast while refreshing the all-time low but a fall in the Employment Change to 4K, versus the market consensus of 30K and 17.9K prior, seems to have probed AUD/JPY buyers. It’s worth noting that the softer-than-expected prints of the Aussie Wage Price Index for Q1 2022 challenged the RBA hawks the previous day.
Read: Australian labour report leavs AUD sidelined, so far
AUD/JPY pair’s reversal from the 21-DMA and 50-DMA confluence, around 91.30, joins steady RSI to keep sellers hopeful.
Even if the pair manages to cross the 91.30 hurdle, a monthly resistance line near 92.50 will be testing the AUD/JPY bulls.
On the contrary, 50% Fibonacci retracement (Fibo) of January-April upside, near 88.10, restricts the short-term downside of the pair. However, major attention will be given to an upward sloping trend line from late January, around 87.70.
Should the quote drop below 87.70, the monthly low of 87.30 may act as the last defense for the AUD/JPY buyers before directing them to the 61.8% Fibo near 86.25.
AUD/JPY: Daily chart
Trend: Further weakness expected