AUD/JPY Price Analysis: Extends recovery, indicators remain in negative territory
- AUD/JPY was seen trading around the 93.75 area ahead of the Asian session, posting a second consecutive day of gains.
- Indicators show signs of recovery, but the overall outlook remains uncertain as momentum is still in negative territory.
The AUD/JPY pair extended its recovery on Wednesday ahead of the Asian session, rising for the second straight day and trading near the 93.75 zone. Buyers are showing renewed interest after the recent downside, but the overall bias remains uncertain as indicators, while improving, continue to signal weakness.
Technically, the Relative Strength Index (RSI) is climbing sharply but remains in negative territory, indicating that bullish momentum is yet to fully establish. Similarly, the Moving Average Convergence Divergence (MACD) histogram is printing decreasing red bars, which suggests that selling pressure is fading, but further confirmation is needed for a sustained rebound.
Looking ahead, immediate resistance is seen near the 94.00 level, where a breakout could reinforce the short-term bullish outlook. On the downside, key support is found around 93.20, with a break below potentially triggering renewed selling pressure. If the pair manages to hold above this area, consolidation around current levels might be expected.
AUD/JPY daily chart
Author
Patricio Martín
FXStreet
Patricio is an economist from Argentina passionate about global finance and understanding the daily movements of the markets.
