AUD/JPY Price Analysis: Sellers hit a wall after fresh multi-month lows
- AUD/JPY extended its decline ahead of the Asian session, trading near the 92.00 zone after a sharp drop.
- The pair fell to its lowest level since August 2024 but rebounded as sellers struggled to push further.
- Immediate resistance aligns near 92.60, while support remains at the recent low; indicators suggest possible consolidation.
AUD/JPY experienced a sharp drop on Tuesday, reaching its lowest level since August 2024 before bouncing back. The pair came under renewed selling pressure ahead of the Asian session but found strong support near the 92.00 region, leading to a mild recovery. Despite the brief bounce, bearish sentiment persists, with technical indicators still favoring downside risks.
The Relative Strength Index (RSI) continues to decline sharply within oversold territory, suggesting that sellers have dominated recent price action. Meanwhile, the Moving Average Convergence Divergence (MACD) prints decreasing red bars, signaling that selling momentum may be losing intensity. The latest price reaction hints at a possible consolidation phase, as sellers struggle to push lower.
Looking at support and resistance levels, immediate resistance stands near 92.60, followed by the 93.00 zone, which aligns with previous daily highs. On the downside, the recent low near 92.00 remains key support; a decisive break below this level could open the door for further losses. However, if consolidation takes hold, the pair may trade within a narrow range before its next directional move.
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.
