AUD/JPY Price Analysis: Downward pressures resume, pair closes its weakest week since April
- AUD/JPY resumes decline, falling to 105.25, marking one of the lowest levels in over a month.
- The recovery experienced on Thursday was short-lived as selling pressures resumed, augmenting the prevalent negative outlook.
In Friday's session, the AUD/JPY pair has resumed its downtrend, declining by 0.20% to reach 105.25. The resumption of this bearish trend suggests that the rebound registered previously on Thursday may have been more corrective rather than indicative of a trend reversal. This sustains the dominance of the bears and reinforces the existing negative outlook as the pair will close a 1.60% weekly loss.
The daily Relative Strength Index (RSI) for AUD/JPY currently stands at 42, slightly below Thursday's value, suggesting a continuation of the negative momentum. The similar pattern in the Moving Average Convergence Divergence (MACD) that continues to print rising red bars, suggests a continuation of the selling activity, despite the minor rebound seen previously.
AUD/JPY daily chart
On a broader perspective, the AUD/JPY's short-term bearish trajectory seems to persist, with its price remaining below the 20-day Simple Moving Average (SMA). Looking ahead, immediate support levels appear to have formed around the 105.00 mark, which the buying pressure needs to maintain to fend off a deeper correction. To moderate further potential losses, bulls must aim for the recovery of the 106.00, and subsequently, the 106.50 mark.
Author
Patricio Martín
FXStreet
Patricio is an economist from Argentina passionate about global finance and understanding the daily movements of the markets.
