AUD/JPY Price Analysis: Downtrend persisting, pair in lows since March
- AUD/JPY pair extends losses, down by more than 1%.
- Daily indicators suggest a possible shift in momentum, as RSI stands deep in oversold territory while MACD maintains a bearish tone.
- Pair plummets beyond the critical 100.30 support level, leaving market participants vigilant over 97.00 support.
Despite showing signs of a slight recovery Monday, the AUD/JPY pair substantiates the bearish streak, losing ground dramatically over the week with dwindling trading volume reinforcing this downward sentiment. After piercing through the crucial 100.30 support level, the currency pair is now orienting around the 97-figure mark.
The Relative Strength Index (RSI) keeps drifting further below the 30 mark which suggests that extreme selling activity might have left the market exhausted, hinting at a plausible reversal. Although drifting into oversold territory, the Moving Average Convergence Divergence (MACD) continues with its flat, red bars, pointing to prevailing bearish momentum.
AUD/JPY daily chart
The AUD/JPY pair currently seeks a robust footing around the major support line at 97.00, a defensive line critical in curbing further losses. A deliberate violation of this benchmark might plunge the pair deeper, while a rebound could result in the 98.70 - 100.00 levels behaving as a strong resistance.
Author
Patricio Martín
FXStreet
Patricio is an economist from Argentina passionate about global finance and understanding the daily movements of the markets.
