AUD/JPY Price Forecast: Bulls attempt to take control, encouraged by oversold conditions
- The AUD/JPY bulls have pushed the pair higher, aiming to close the bullish engulfing pattern higher.
- The pair extended its gains but faced resistance at 96.50.
- The RSI and MACD indicate bullish momentum is building.
On Wednesday's session, the AUD/JPY pair rose by 1.80% to 95.90 continuing the upward momentum after the trend reversal of early August. The pair has extended its gains and now faces resistance at 96.50. However, the pair seems to have entered a consolidation period, and the bears remain in control.
The Relative Strength Index (RSI) is currently at 18, indicating an oversold condition. The Moving Average Convergence Divergence (MACD) is showing decreasing red bars, and the recovery of the RSI indicates a loss of bearish momentum.
AUD/JPY daily chart
The AUD/JPY pair is currently trading below its 20,100, and 200-day Simple Moving Averages (SMA), which confirms an overall bearish outlook. A break below the 94.60 level could open the door to a further decline, with the next major support level at 94.00. On the upside, the pair faces resistance at 96.00 - 96.50. A break above might improve somewhat the negative outlook.
Author
Patricio Martín
FXStreet
Patricio is an economist from Argentina passionate about global finance and understanding the daily movements of the markets.
