AUD/JPY Price Analysis: Bears show momentary dominance, long-term bullish tilt remains

In Tuesday's session, AUD/JPY was seen declining to 98.95, marking mild losses. Despite the insignificant setback, neither buyers nor sellers have gained a distinct advantage, indicating potential market stability or a possible shift in direction. While signs of selling pressure are evident, the pair exhibits a strong stand over the 20,100 and 200-day Simple Moving Averages (SMAs), signifying long-term bullish sentiment. That being said, there are signals that the sellers are present after pushing the pair down by nearly 1% last Friday.

On the daily chart, the Relative Strength Index (RSI) stands with a neutral slope. The flattening trend and the green bars of the Moving Average Convergence Divergence (MACD) hint that the market remains largely balanced, with neither buyers nor sellers having a distinct edge on Tuesday.

AUD/JPY daily chart

Moving onto the hourly chart, the RSI trajectory appears slightly bearish, with recent readings below 50, suggesting mounting selling pressure. The rising red MACD histogram bars further confirm the existing negative momentum.

AUD/JPY hourly chart

When assessing both charts, the short-term outlook seems to contrast with the daily chart's indications, which appear less bearish. It is evident that the bears are taking a breather following last week’s strong downward movements, but are still around the corner. However, the 1% dip seen on Friday, hasn’t affected yet the overall bullish trend.