AUD/JPY Price Analysis: Cross revives, bears are still in command
- AUD/JPY cuts losses, rising to 105.40, still in lows in over a month.
- The five-day downtrend has been halted, indicating a potential settling of bearish sentiment.
In Thursday's session, the AUD/JPY pair cut a significant five-day losing streak, climbing by 0.30% to reach 105.50. This rise is symbolically indicative of an interruption to the extended bearish momentum experienced by the pair seen in the last sessions. Even so, indicator readings are still stationed in the negatives, creating the possibility for the pair's upward correction to be rather more corrective in nature.
The daily Relative Strength Index (RSI) for AUD/JPY now hovers at 43, marking the potential start of a mild rebound from its session's reading of 37. The Moving Average Convergence Divergence (MACD) still shows flat red bars, suggesting a pause in the intensified selling activity seen previously.
AUD/JPY daily chart
Looking at the broader picture, the AUD/JPY pair seems to continue its bearish course, emphasized by its position below its 20,100 and 200-day Simple Moving Average (SMA). Moving forward, immediate support levels rest at 105.00 and 104.30 which buyers must watch in anticipation of a potential deeper correction. To avoid further potential losses, buyers must strive to recover the 106.00 mark, extending their goal to the reclaiming of the 106.50 level.
Author
Patricio Martín
FXStreet
Patricio is an economist from Argentina passionate about global finance and understanding the daily movements of the markets.
