Dips to three-day low, as bearish-engulfing surfaces

• AUD/JPY corrects from recent highs, trading down by 0.52% at 96.80, after the RBA’s decision to increase interest rates.
• The pair’s immediate support is near the 96.00 level, with subsequent levels at 95.92 (Tenkan-Sen), 95.61 (Senkou-Span A), 95.30 (Kijun-Sen), and 95.00 (Ichimoku Cloud top).
• To reverse the bearish outlook, bulls must push the pair back above the 97.00 threshold, aiming for the recent high at 97.59 and the YTD peak at 97.67.

AUD/JPY retreats after hitting a five-month high of 97.59, though it slid toward the 96.80 area after hitting a three-day low of 96.40 late in Tuesday’s session. Even though risk appetite improved, the Aussie Dollar (AUD) extended its losses against the Japanese Yen (JPY) after the Reserve Bank of Australia’s (RBA’s) decision to hike rates. The pair is trading at 96.80, down 0.52%.

The AUD/JPY daily chart portrays the pair as neutral to slightly downward bias, as it formed a bearish-engulfing three-candle chart pattern, which could open the door for further downside. In the event of the cross slumping below the 96.00 mark, next support is seen at the Tenkan-Sen at 95.92. A breach of the latter will expose the Senkou-Span A at 95.61, followed by the Kijun-Sen at 95.30, and the top of the Ichimoku Cloud (Kumo) at 95.00.

For a bullish resumption, AUD/JPY buyers must reclaim the 97.00 figure, followed by Tuesday’s high at 97.59, followed by the year-to-date (YTD) high at 97.67.

AUD/JPY Price Chary – Daily

AUD/JPY Technical Levels