AUD/JPY Price Analysis: Bears consolidate after hitting oversold conditions on the hourly chart
- The AUD/JPY is trading down at 97.73 with losses in Tuesday’s session.
- Despite operating above the main SMAs, indicating long-term bullish sentiment, the short-term scenario is dominated by selling pressure.
- The daily RSI remaining pointing down, and MACD depicting an increase in red bars both signal growing selling momentum.
For Tuesday's session, AUD/JPY is exchanging hands at a level of 97.73, recording a minor decline of 0.19%. Despite the selling exertion evident on the daily chart, there appears to be a broader remains bullish as the pair continues trading above its main Simple Moving Averages (SMAs).
On the daily chart, the Relative Strength Index (RSI) for AUD/JPY remains in negative territory, while, the Moving Average Convergence Divergence (MACD) histogram is rising with red bars, indicating an increase in negative momentum.
AUD/JPY daily chart
Turning to the hourly chart, the RSI dipped into oversold territory earlier in the session, suggesting a strong bearish outlook very short term, and now the index recovered near its midline point suggesting that sellers are taking a breather. This view is corroborated by the rising green bars of the MACD.
AUD/JPY hourly chart
Overall, the AUD/JPY pair seems to be under selling pressure in the short term despite the broader bullish context suggested by its position above the 100 and 200-day SMAs. For the rest of the session, the pair may continue correcting oversold conditions hit earlier in the session.
Author
Patricio Martín
FXStreet
Patricio is an economist from Argentina passionate about global finance and understanding the daily movements of the markets.
