AUD/JPY Price Analysis: Sellers step in within a rising wedge and break the 20-EMA, eyeing 92.50

• AUD/JPY plummeted by 270 pips in two days and is losing in the week 0.54%.
• Worldwide S&P Global PMIs spurred global recession fears, as all missed estimations.
• AUD/JPY Price Analysis: It is still upward biased, but the price is closing to the bottom of a rising wedge which, once broken, may send the pair towards 85.00.

The AUD/JPY plunged on Thursday for the second straight day, diving 1.39%, reaching on its way south a daily low near 92.64, though on Friday, as the Asian session began, AUD/JPY buyers reclaimed the 93.00 mark. At the time of writing, the AUD/JPY is trading at 93.10.

The market sentiment seesawed throughout Thursday’s session. Meanwhile, Asian equity futures follows Thursday’s Wall Street mood, climbing between 0.05% and 1%. Dismal S&P Global PMIs reported from the Eurozone, the UK, and the US, threaten to derail growth, with readings accelerating towards the 50 midline, which, broken to the downside, depicts that the economy is entering a contraction phase.

AUD/JPY Price Analysis: Technical outlook

Daily chart

From a technical perspective, the AUD/JPY remains upward biased but under selling pressure. Price action in the last couple of days witnessed a 270 pip fall, from around weekly highs near 95.28, towards 92.64, June 23 lows.

It’s worth noting that AUD/JPY’s price is closing towards the rising wedge bottom trendline, meaning a break below would send the cross towards 85.00. However, on its way south, the AUD/JPY will need to breach crucial supports on its way south.

Therefore, if the above scenario plays out, the AUD/JPY first support would be the 50-day exponential moving average (EMA) at 92.44. Break below would send the cross aiming towards the 100-EMA at 89.83, followed by a fall to the 200-EMA at 86.13.

AUD/JPY Key Technical Levels