In the latest trading session, the AUD/JPY pair saw a slight uptick in momentum as indicated by the daily Relative Strength Index (RSI) increase. However, signs of bullish fatigue emerged after renewed gains were met with resistance at the 20-day Simple Moving Average (SMA) around the 103.80 area. This resistance level has been acting as a stronghold for the pair, making it a key area to watch.
Looking at the daily chart, the AUD/JPY pair bounced to 103.80 but was unable to break above the 20-day SMA. The RSI moved up to 52, showing a gain in momentum from the previous session. On the other hand, the Moving Average Convergence Divergence (MACD) indicator displayed flat red bars, indicating a steady selling traction in the market.
In terms of support and resistance levels, further losses could find the 100 and 200-day SMAs acting as shields for the pair. On the flip side, buyers will face resistance in pushing the pair above the 20-day SMA at 103.80 and the key level of 105.00. If these resistance points hold, the AUD/JPY pair is likely to remain in a consolidation phase as it navigates through the market conditions.
It is evident that the cross has entered a consolidation phase following a strong rally that saw it reach multi-year highs. This consolidation phase may continue until a clear direction is established, with traders monitoring key levels and indicators for any potential breakout or reversal in the market.
Overall, the AUD/JPY pair is currently in a consolidation phase, with resistance at the 20-day SMA and support from the 100 and 200-day SMAs. Traders are closely watching key levels and indicators for any signs of a breakout or reversal in the market direction. The daily RSI increase and signs of bullish fatigue suggest that momentum is picking up, but further confirmation is needed to determine the next move for the pair.
