AUD/JPY Price Forecast: Tumbles but bulls moved in around 96.00

• AUD/JPY trades flat at 96.16 as Aussie fails to capitalize on risk appetite.
• The 96.00 figure remains critical support; break below may trigger test of 95.50 and 95.00.
• Upside needs reclaim of 96.50 to challenge 97.00 and July peak at 97.43.

The AUD/JPY consolidates below the 97.00 level on Tuesday, following the release of the first election results in Japan. Although the risk appetite was upbeat, the Aussie Dollar failed to gain traction and is down at the beginning of the week. At the time of writing, the cross-pair trades at 96.16, virtually unchanged.

AUD/JPY Price Forecast: Technical outlook

Although the cross-pair dropped on Monday, it remains afloat above the 96.00 figure, seen as the last line of defense for bulls, before clearing the path toward the confluence of the 20 and 50-day SMAs at around 95.73/62.

The Relative Strength Index (RSI) indicates that buyers are losing some momentum, despite the RSI remaining bullish. Hence, in the near term, expect a leg down before the uptrend resumes.

If AUD/JPY drops below 96.00 and beneath the confluence of the 20 and 50-day SMAs, then the 95.50 mark would be up next. A breach of the latter will expose the 95.00 mark, followed by the 100-day SMA at 94.35.

On further strength, if AUD/JPY surpassed the 96.50 figure, a move toward 97.00 is on the cards. Key resistance levels lie overhead at 97.43, the July 15 high, followed by the 98.00 figure.

AUD/JPY Price Chart - Daily