AUD/JPY Price Forecast: Stages recovery after hitting five-month low

• AUD/JPY rebounds from 94.30 low, showing minimal change as Asian session progresses.
• Neutral to slight downward bias indicated; key breakout point at Kijun-sen 95.91 for gains.
• Watch resistance at 97.50 and support at 95.61 as traders navigate volatile trading conditions.

The AUD/JPY bounced off after hitting five-month lows of 94.30 on February 10, yet buyers stepped in and pushed the cross-pair above the 95.00 mark. At the time of writing, the pair is exchanged hands at 95.82, down a minimal 0.06 as Wednesday's Asian session commences.

AUD/JPY Price Forecast: Technical outlook

The cross-pair is neutral to slightly downward-biased after dropping from a yearly peak of 99.15. On its way down, the AUD/JPY cleared the Ichimoku Cloud (Kumo), extending its losses to almost 4% in the year.

Since then, the AUD/JPY has recovered with momentum shifting neutral, as depicted by the Relative Strength Index (RSI). But if bulls want to regain some ground, they must clear the Kijun-sen at 95.91 before the pair challenges the bottom of the Kumo near 97.50.

If those two levels are surpassed, the next resistance would be the January 24 swing high at 98.75 before testing the top of the Kumo at 99.00.

For sellers, the scenario suggests they need to clear the Tenkan-sen at 95.61, followed by the 95.00 mark. If cleared the AUD/JPY remains vulnerable to further downside.

AUD/JPY Price Chart - Daily