restrictive monetary policy, which caused a jump in bond yields. At 95.33, the AUD/JPY is retreating from multi-year highs, down 0.05% as Friday’s Asian session begins.US equities finished Thursday’s session with losses, between 1.94% and 2.75%. Worries about global central banks restricting access to money might cause an economic slowdown and keeps market players uneasy, flying towards safe-haven assets.
Recapping the AUD/JPY Thursday’s price action, the cross opened near the daily highs at around 96.80 and fell as soon as Tokyo’s session began. The AUD/JPY dipped towards a fresh two-day low at 95.29 and broke the 1-hour 50 and 100-simple moving averages , each sitting at 96.07 and 95.46, respectively.depicts the pair as upward biased. Thursday’s pullback might extend towards the May 5 high at 94.02, as the Relative Strenght Index at 64.17 is aiming lower.
If that scenario plays out, the AUD/JPY first support would be the 95.00 psychological level. Once cleared, the following support would be the June 7 low at 94.80, followed by the above-mentioned 94.02. Once there, the AUD/JPY buyers could resume the uptrend and challenge the YTD high near 97.00.