• AUD/JPY experiences modest losses even though risk appetite has improved.
• Nevertheless, the lack of strength in the Australian Dollar keeps the cross-pair subdued.
• If sellers remain in charge, further downside is seen past 94.00; otherwise, buyers can counterattack on their way to 96.00.

The AUD/JPY registered modest losses on Thursday after investors digested the US central bank's decision to pivot to a dovish stance, which would usually underpin the cross pair. Nevertheless, as the Japanese Yen (JPY) gathered tractions, the Aussie’s (AUD) lack of strength depressed the pair throughout the day. As the Asian session began, the AUD/JPY exchanges hands at 95..02, virtually unchanged.

From a technical standpoint, the pair is downward biased after sliding below the Ichimoku Cloud (Kumo). Nevertheless, the latest central bank bonanza kept the pair seesawing, before gathering a clear direction.

Despite printing three bearish days, the AUD/JPY could threaten to stage a comeback if buyers lift the pair inside the Kumo, with its lowest point at 95.31. Once cleared, the next resistance would be the Tenkan-Sen at 95.61, ahead of the Senkou Span A at 95.87, followed by the confluence of the Senkou Span B and the Kijun-Sen at 96.14. Further upside is seen once the pair clears the top of the Kumo, like the 97.00 figure.

On the other hand, if sellers drag prices below the 95.00 figure, that could open the door for further downside. The first critical support level would be 94.57, the December 14 swing low, followed by the December 7 low of 93.70