#AUDJPY @ 92.2550 is declining towards 92.00 as China’s unrest-inspired volatility will stay for longer. (Pivot Orderbook analysis)

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• AUD/JPY is declining towards 92.00 as China’s unrest-inspired volatility will stay for longer.
• Stable Japan’s employment numbers may weigh on the cross ahead.
• This week, the Caixin Manufacturing PMI data will be of utmost importance.

The pair currently trades last at 92.2550.

The previous day high was 94.06 while the previous day low was 93.61. The daily 38.2% Fib levels comes at 93.89, expected to provide resistance. Similarly, the daily 61.8% fib level is at 93.78, expected to provide resistance.

The AUD/JPY pair is expected to extend its downside journey towards the crucial support of 92.00 as the Statistics Bureau of Japan has reported stable employment data. The Unemployment Rate has landed at 2.6% higher than the expectations of 2.5% but in line with the prior release of 2.6%. While, the Jobs/Applicants ratio has been recorded similarly to the projections at 1.35, higher than the former figure of 1.34.

The risk barometer is going through a rough phase as enlarging unrest in China against the rollback of Covid-19 lockdown measures by the Chinese authorities has crippled the Aussie dollar. After meeting the headlines of public protest against curbs, economists didn’t waste a single second in providing weak economic projections for the Chinese economy.

No one could deny the fact that the impact of weaker projections for China won’t restrict to the dragon economy only. Its trading partners like Australia and New Zealand are also facing the heat. China’s protest-inspired risk aversion theme has dragged the AUD/JPY pair to near the critical hurdle of 92.00.

It is worth noting that individuals’ demand for democracy in the place of dictatorship could bring political instability to the Chinese economy. This could weaken investors’ risk appetite further.

Going forward, investors will focus on the Caixin Manufacturing PMI data, which will release on Thursday. The economic data is seen lower at 48.6 vs. the prior release of 49.2. A weaker-than-projected Caixin Manufacturing data could escalate volatility in the cross ahead.

Technical Levels: Supports and Resistances

AUDJPY currently trading at 92.36 at the time of writing. Pair opened at 93.82 and is trading with a change of -1.56 % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 94.03, 50 SMA 93.89, 100 SMA @ 94.31 and 200 SMA @ 92.62.

The previous day high was 94.06 while the previous day low was 93.61. The daily 38.2% Fib levels comes at 93.89, expected to provide resistance. Similarly, the daily 61.8% fib level is at 93.78, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 93.6, 93.38, 93.15
• Pivot resistance is noted at 94.05, 94.28, 94.5

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