Analysis of the AUD/JPY Price: It Plummets Following the RBA's Dovish Stance; Technical Indicators Suggest Downside Risks Persist
The AUD/JPY pair fell below significant support levels, including the Kijun-Sen and Senkou Span. Bears are gaining ground, as indicated by the Chikou Span crossing below price action and the closing distance between the Tenkan and Kijun-Sen. AUD/JPY investors who reclaim 97.00 could potentially initiate a rally to 98.00.

The AUD/JPY opened the Asian session on Wednesday in a negative mood, following losses of over 1% on Tuesday. The Reserve Bank of Australia (RBA) maintained interest rates at their current level. However, market participants interpreted this as a "dovish hold," which resulted in sellers of the Australian Dollar (AUD) applying downward pressure on the currency. As of the moment of writing, the pair is trading at 96.36, representing a decrease of 0.02%.
The AUD/JPY maintains a neutral to upward bias despite significant losses, but adverse risks are emerging. As it crosses below the price action, the Chikou Span becomes bearish, and the gap between the Kijun-Sen and Tenkan Span is closing. A decline in the pair's value below the low of 96.28 set on November 10 will apply downward pressure. The subsequent support would be the apex of the Kumo, which is approximately 95.15/25 on the Ichimoku Cloud, and then the nadir of the Kumo at 94.95.
Conversely, purchasers might reclaim control should the AUD/JPY pair successfully reclaim the 97.00 level. The Tenkan-Sen, which is observed at 97.40, is the subsequent level of resistance identified. Should the pair accumulate further momentum, it may advance towards the 98.00 mark.
Bonus rebate to help investors grow in the trading world!