• The Japanese yen is recovering as a quarter, and month-end flows accelerate.
• AUD/JPY Price Forecast: The cross-currency remains upward biased but might correct lower before resuming the uptrend.

The AUD/JPY slid for the second consecutive day on Wednesday, as the Asian Pacific session is about to begin, courtesy of a dismal market mood as the Russia-Ukraine conflict escalates. Peace talks, according to Moscow, have failed to achieve a breakthrough as Russia intensifies its attacks on Ukraine. At 91.54 off the weekly highs, around 93.12, reflects the risk-off mood in the markets.

Wall Street’s finished Wednesday with a blood bath, with major indices in the red. Asian equity futures point to a lower open, except for China’s A50 and Hang-Seng, which benefit from a dovish People’s Bank of China (PBoC), which aims to pump more money into China’s financial markets to stimulate growth.

On Wednesday, the AUD/JPY began on a higher note, near 92.50s daily’s high, and then fell as the market mood shifted negatively, which boosted safe-haven peers appetite, particularly the Japanese yen and the Swiss franc, the leaders of the session. That said, the AUD/JPY settled down at current levels.

AUD/JPY Price Forecast: Technical outlook

The last two days’ AUD/JPY price action has achieved to record a series of lower highs and lower lows, so the pair is downward biased in the near term. It is worth noting that Wednesday’s close at 91.45 was lower than Monday’s 91.53 low, confirming the aforementioned.

That said, the AUD/JPY might correct before resuming upwards. So the AUD/JPY first support would be  91.50. A sustained break would expose 91.00. Once cleared, the next demand zone would be Pitchfork’s central-parallel line’s confluence with the 90.00 mark and then the 89.00 figure.