AUD/JPY Price Analysis: Pair slides below 107.00, bearish sentiment increase

AUD/JPY slips towards 106.90, breaching the 20-day SMA support.
A bearish sentiment is projected for the next few session, continuing the downtrend from last week.

Patricio Martín FXStreet

In Monday's trading session, the AUD/JPY pair noted a further decline of 0.15% to fall to 106.90. This continues the observable trend from last week Thursday's session which saw a significant drop from above 109.00. The present conditions point towards a bearish outlook for the forthcoming sessions as sellers appear to continue their dominance.

The daily Relative Strength Index (RSI) for the AUD/JPY pair currently reads 53, showing a marginal plunge from last week’s high of 80, slowly pushing toward the bearish zone. Despite this shift, the market seems to retain its neutral stance as it remains in positive territory. Complementing this, the daily Moving Average Convergence Divergence (MACD) shows rising red bars, indicating potential weakness.

AUD/JPY daily chart

From a broader viewpoint, the AUD/JPY pair hints at a bearish sentiment, especially considering its position below the 20-day SMA support. Should further downward movement occur, the immediate support levels at 106.50 and 106.00 are pivotal marks to consider. Conversely, to mitigate further potential losses, buyers must aim to surpass the 107.00 level (20-day SMA) and aim towards the 108.00 barrier to signal recovery.

Author

Patricio Martín

FXStreet

Patricio is an economist from Argentina passionate about global finance and understanding the daily movements of the markets.

AUD/USD hits nine-week lows below 0.7000 on RBA Bullock's remarks

AUD/USD reverses a brief uptick and turns lower to hit nine-week lows below 0.7000 in the European morning on Tuesday, as traders digest cautious remarks from Reserve Bank of Australia (RBA) Governor Michele Bullock during the press conference. Earlier on, the RBA raised the cash rate to 4.60%, as widely expected, leaving the door open to further rate hikes if needed.

USD/JPY consolidates near 157.50 as a bullish USD counters intervention risks

USD/JPY struggles to capitalize on the overnight bounce from a one-week low, consolidating around 157.50 in the Asian session on Tuesday. Trump's concerns about the Japanese Yen's weakness fueled speculation about another US-Japan joint intervention. This, along with the hawkish BoJ, underpins the JPY and caps the currency pair. Meanwhile, rising Fed rate-hike bets and oil-driven inflation fears continue to push US bond yields to multi-year highs, keeping the US Dollar pinned near a two-month high and supporting the pair.