AUD/JPY Price Analysis: Sellers regain control, bearish momentum still weak
- AUD/JPY fell after a two-day winning streak, trading near the 93.60 zone ahead of the Asian session.
- While selling pressure resumed, the MACD indicates a decline in bearish momentum, leaving the short-term outlook uncertain.
The AUD/JPY pair retreated on Thursday ahead of the Asian session, giving up gains from the previous two sessions as sellers regained control. The pair moved lower toward the 93.60 region, reflecting renewed downside pressure, although technical indicators suggest the bearish bias could be losing steam.
The Relative Strength Index (RSI) remains in negative territory and is declining, confirming the downward movement. However, the Moving Average Convergence Divergence (MACD) indicator is printing decreasing red bars, hinting at fading selling pressure. This suggests that while bears remain active, the momentum could be softening, making the short-term outlook uncertain.
Looking at key levels, immediate support emerges near 93.50, with a break below this mark opening the door for a deeper decline toward 93.00. On the flip side, initial resistance is found at 94.00, followed by the 20-day Simple Moving Average (SMA) around 94.30, which could cap any recovery attempts.
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.
