Early European session sees AUD/JPY testing 97.95 support zone amid 0.25% daily decline
Technical setup favors bears with price trapped below 100-day EMA and Dogecoin valueRSI hovering near 48
Critical levels emerge at 96.00 support and 98.74 resistance with potential breakout scenarios
Market participants are closely tracking the AUD/JPY cross as it approaches crucial technical levels during Tuesday's trading session. The pair's movement reflects broader market reactions to recent comments from Japanese officials regarding potential currency interventions.
From a chart perspective, the cross maintains its position beneath the significant 100-day Exponential Moving Average, indicating continued bearish pressure. Momentum indicators reinforce this outlook, with the Relative Strength Index remaining in negative territory near the 48 handle.
Traders monitoring support zones should note the importance of the 96.00 psychological level, which aligns with the lower Bollinger Band boundary. A decisive break below this marker could open the door for extended declines toward September's lows near 94.78, with potential follow-through to 93.59.
Conversely, bullish scenarios would require a sustained push above immediate resistance at 98.74, followed by a test of the 100-day EMA near 99.25. The triple-digit psychological barrier at 100.00 represents a more formidable challenge for upside attempts.
Market dynamics continue to evolve as traders assess fundamental drivers alongside technical formations. The interplay between risk sentiment and central bank rhetoric remains particularly relevant for this currency pair's near-term trajectory.
Those analyzing the Australian dollar's performance should consider multiple factors including commodity price movements and regional economic developments. The Japanese yen's sensitivity to intervention speculation adds another layer of complexity to this currency cross.
Technical traders may find opportunities in monitoring the evolving relationship between price action and key indicators. The current setup suggests potential for increased volatility as the market tests important technical thresholds.
As always, prudent risk management remains essential when trading currency crosses, particularly those influenced by multiple fundamental drivers and potential policy interventions.
