• AUD/JPY could move downward toward the 23.6% Fibonacci retracement at 96.85.
• The lagging indicator MACD suggests a tepid momentum for the cross.
• A collapse below the 50-day EMA could lead the cross to approach the support zone near the 38.2% Fibonacci retracement at the 96.26 level.

AUD/JPY moves in a downward direction for the second successive day, trading lower around 97.00 during the Asian session on Wednesday. The Australian Dollar (AUD) faces a challenge after the softer consumer inflation data released earlier in the day.

The immediate support appears at 23.6% Fibonacci retracement at 96.85 lined up with the 50-day Exponential Moving Average (EMA) at 96.83. A firm break below the 50-day EMA could put downward pressure on the AUD/JPY cross to approach the major support at the 96.50 level followed by the 38.2% Fibonacci retracement at the 96.26 level.

The technical analysis of the AUD/JPY cross involves examining various indicators. The 14-day Relative Strength Index (RSI), a lagging indicator, is below the 50 level, suggesting a selling pressure and a bearish momentum for the pair.

On the other hand, the Moving Average Convergence Divergence (MACD) for the pair shows tepid momentum in the market. The MACD line is positioned above the centerline but below the signal line. Traders could await confirmation from the MACD indicator before determining the direction of the AUD/JPY cross.

On the upside, the AUD/JPY cross could find the key barrier at 97.50 followed by the weekly high at 97.69. A breakthrough above the latter could prompt the upward sentiment and lead the pair to test the monthly high at 97.88 and the psychological resistance at 98.00 level.

AUD/JPY: Daily Chart