AUD/JPY Price Analysis: Rally stops at year-to-date high, a drop looms

As the Asian session opens, the AUD/JPY is hovering around 93.20, following Wednesday's session, which formed a doji after achieving fresh year-to-date (YTD) highs. A daily close below the June 6 high of 93.26, on the other hand, shows that buyers are losing control ahead of Thursday's session.

Technical Analysis of the AUD/JPY Exchange Rate

The AUD/JPY appears to be halting its climb, as a doji appeared on Wednesday after reaching a new YTD high. However, the AUD/JPY is still upwards-oriented in the longer term and may pull back toward the junction of the 50% Fibonacci retracement and the Tenkan-Sen line at approximately 91.89. Before resuming its uptrend, the price is projected to fall further, reaching the next confluence of the Kijun-Sen line and the 61.8% Fibo retracement at about 91.34/50.

In contrast, a bullish continuation will see the AUD/JPY break through the YTD high and challenge the psychological level of 94.00. A break of the latter will expose the November 16 daily high of 94.65, before gathering traction and attempting the 95.00 mark.

AUD/JPY Price Daily chart