The AUD/JPY pair saw a decline to 107.10 in Friday’s trading session, indicating a bearish outlook for the next few sessions. This shift comes after a substantial dip from Thursday, where the pair was trading above the 109.00 mark. The daily Relative Strength Index (RSI) for the AUD/JPY dropped significantly from 79 to 54, suggesting a weakening upward momentum and potential further bearish movement. The Moving Average Convergence Divergence (MACD) also shows rising red bars, reinforcing the bearish sentiment.
In the broader picture, the AUD/JPY is holding just above the 20-day SMA support at 107.10, indicating a possible continuation of bearish sentiment. If the pair continues to decline, the immediate support levels at 107.00 and 106.00 will be critical levels to watch. To prevent further losses, buyers must aim for a recovery towards the 108.00 barrier. The current scenario suggests that sellers have gained momentum, leading to a bearish outlook for the AUD/JPY pair in the coming sessions.
Overall, the AUD/JPY pair’s downward turn and the weakening momentum indicated by the RSI and MACD signal a bearish trend in the near future. Traders should keep a close eye on the support levels at 107.00 and 106.00, as further declines could follow. Buyers must work towards a recovery above the 108.00 barrier to prevent additional losses. The technical indicators point towards a potential bearish movement for the AUD/JPY pair, emphasizing the need for cautious trading strategies in the current market environment.
In conclusion, the AUD/JPY pair’s decline to 107.10 and the shift towards a bearish outlook signal a challenging period ahead for traders. Monitoring key support levels and aiming for a recovery above the 108.00 barrier will be crucial in navigating the current market conditions. With the RSI and MACD indicating weakening momentum, traders should be prepared for potential further declines in the AUD/JPY pair. By staying informed and developing effective trading strategies, investors can better position themselves to navigate the uncertainties in the forex market.
