Home » AUD/JPY Price Analysis: Bears seize control, reclaim the 20-day SMA

AUD/JPY Price Analysis: Bears seize control, reclaim the 20-day SMA

by FX BrokerNews
  • The AUD/JPY currently trades at 97.42, undergoing a 0.43% loss in Thursday’s trading session.
  • The daily chart shows a shift in RSI from positive to negative territory.
  • If the AUD/JPY holds above the 100 and 200-day SMA the outlook will still be positive.

The AUD/JPY pair is presently positioned at 97.42, reflecting a 0.43% decline. The pair is experiencing modest selling pressure, signaling the influence of sellers, although the bulls are holding their ground with the pair remaining above crucial Simple Moving Averages (SMAs).

Examining the daily Relative Strength Index (RSI), an inclination towards a negative trend is observed, transitioning from positive territory. This, coupled with the emergence of increasing red bars in the Moving Average Convergence Divergence (MACD) histogram, suggests a momentum shift favoring sellers. Despite the prior resilience in positive territory, subtle indications of potential price exhaustion surfaced after the recent attainment of multi-year highs.

AUD/JPY daily chart

Examining the hourly chart, the Relative Strength Index (RSI) has consistently stayed in negative territory, indicating a persistent presence of selling pressure over the recent hours. This bearish signal is further validated by the flat green bars in the Moving Average Convergence Divergence (MACD) histogram. Notably, there is a notable disparity between the daily and hourly charts – the former has recently entered the negative zone, while the latter has already exhibited a pronounced negative trend. This accentuates the rapidity and intensity of the current bearish movement.

AUD/JPY hourly chart

To counterbalance this gloomy outlook, the AUD/JPY pair maintains its position above the crucial 100 and 200-day Simple Moving Averages (SMAs), rebounding after briefly falling below the 20-day SMA. This indicates that, despite the recent shift towards bearish sentiment, the bulls might not have conceded complete control, especially in the context of the longer timeframe.

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