AUD/JPY Price Analysis: Pair drops to around 107.00, bearish outlook ahead
- AUD/JPY declines to 107.10 while holding just above the 20-day SMA support.
- A bearish outlook looms for the next few sessions, following a substantial dip from Thursday.
In Friday's trading session, a downward turn was observed for the AUD/JPY pair as it dipped by 0.23% to reach 107.10. This indicative decline marks a notable shift from the previous session's buoyancy, which saw the pair above the 109.00 mark. Present circumstances suggest a bearish outlook for the next few sessions, as it turns evident that the sellers have found their footing.
The daily Relative Strength Index (RSI) for the AUD/JPY marked a significant dip from Thursday's 79 to 54, drifting even near into negative territory. This trend shift hints at a weakening upward momentum, potentially signifying more bearish days ahead. In concert with this, the Moving Average Convergence Divergence (MACD) demonstrates rising red bars.
AUD/JPY daily chart
Looking at the broader perspective, the AUD/JPY still displays signs of possible bearish sentiment, given its position just slightly above the 20-day SMA support at 107.10. In case of further downward action, immediate support levels at 107.00 and 106.00 are key areas to watch. However, to avert further potential losses, buyers must target a recovery that extends towards the 108.00 barrier.
Author
Patricio Martín
FXStreet
Patricio is an economist from Argentina passionate about global finance and understanding the daily movements of the markets.
