Dark cloud covers loom, bears target 93.00

• Rising geopolitical tensions in the Middle East contribute to risk aversion, weighing on the Aussie Dollar.
• The AUD/JPY formed a dark-cloud-cover chart pattern indicating potential bearish momentum.
• Immediate support is identified at the top of the Ichimoku Cloud (Kumo) at 94.30, followed by the psychological level of 94.00.

AUD/JPY extends its losses for two straight days as Thursday’s Asian session begins, with the pair exchanging hands at around 94.94. On Wednesday, risk aversion dented demand for Aussie Dollars (AUD) amid growing tensions in the Middle East conflict, as the cross-pair printed losses of 0.36%.

From a technical standpoint, the AUD/JPY is trading sideways, trapped within the 94.00/95.00 range, unable to crack the top or the bottom. Price action in the last couple of days printed a dark-cloud-cover chart pattern, suggesting that further downside is expected.

In that case, AUD/JPY first support emerges at the Ichimoku Cloud (Kumo) fop at 94.30 before slumping to 94.00. Once those two levels are cleared, the cross-pair next support emerges at the October 3 swing low of 93.01, before dropping towards the July 28 swing low of 91.97.

On the flip side, AUD/JPY buyers must reclaim the 95.00 mark, if they would like to challenge the September 29 swing high of 96.92, before challenging the year-to-date (YTD) high of 97.67.

AUD/JPY Price Action – Daily chart

AUD/JPY Key Technical Levels