Home » AUD/JPY Price Analysis: Bearish pressure intensifies, sellers eye the 20-day SMA

AUD/JPY Price Analysis: Bearish pressure intensifies, sellers eye the 20-day SMA

by FX BrokerNews
  • The daily chart reveals an overall positive trend but indicators took a big hit on Friday.
  • The hourly RSI hints at a possible short-term upswing following a plunge into the oversold territory.
  • The pair might side-ways trade to consolidate Friday’s movements..

The AUD/JPY pair is currently trading at 98.60, marking a notable decline of nearly 1%. Despite this downturn, the overall trend remains positive, with bulls maintaining control. Furthermore, given the possibility of downward movements being over-extended, the pair may enter a consolidation phase.

On the daily chart, the technical outlook for the AUD/JPY pair indicates a positive trend. The latest Relative Strength Index (RSI) reading resides in positive territory, reflecting the recent upward momentum. Although the RSI peaked near overbought conditions earlier in the week, it has since retreated to a moderate level, suggesting potential consolidation ahead. Meanwhile, the Moving Average Convergence Divergence (MACD) presents a different perspective, with decreasing green bars indicating a slowdown in positive market momentum.

AUD/JPY daily chart

Switching to the hourly chart, the last session’s RSI plunged deep into the oversold territory, which could hint at a potential short-term correction upwards. Despite the sharp drop in the RSI, the MACD histogram displays flat green bars, implying stagnating bullish momentum on hourly timeframes.

AUD/JPY hourly chart

The next target for the sellers is the 20-day Simple Moving Average (SMA) at 98.10. Below that the 100 and 200-day SMAs will act as strong supports in case the downside pressure persists but if the bulls defend this level, the overall trend will remain positive.


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