AUD/JPY experienced a significant drop towards 105.00 in Wednesday’s trading session, indicating a deepening bearish momentum with an extended five-day losing streak. The pair’s decline from Tuesday’s close of 106.80 suggests that further losses may be on the horizon. However, there is potential for a slight upward correction based on intensifying bearish momentum. The daily RSI for AUD/JPY is at 40, indicating new lows since mid-June, while the MACD shows rising red bars, suggesting increased selling activity.
The AUD/JPY pair is currently trading notably below the 20-day Simple Moving Average (SMA) on the daily chart, emphasizing its bearish trend. Immediate support levels are at 105.00 and 104.30, serving as crucial markers for potential further declines. To prevent additional losses, buyers need to push the pair above the 106.00 level and aim for a resurgence towards 106.50. Overall, the downtrend for AUD/JPY remains intact, signaling increased bearish sentiment and a possible correction in the near term.
In the broader scope, AUD/JPY’s bearish tendency is evident as it continues to trade below key support levels. The current downward trend is backed by indicators such as the RSI and MACD, which both confirm the intensifying sell-off. This suggests that the pair may face further challenges in the short term, with support levels at 105.00 and 104.30 being closely monitored by traders for potential price reactions. A break above 106.00 could signal a temporary relief for buyers, allowing for a potential uptick towards the 106.50 resistance level.
Overall, AUD/JPY’s recent drop towards 105.00 highlights the strengthening bearish momentum in the pair, with indicators pointing towards further downward movement. While a correction may be possible due to intensified selling activity, the broader picture suggests that the pair remains in a downtrend, with key support levels playing a significant role in determining its future direction. Traders should monitor the 106.00 level for potential bullish signals, while being aware of the possibility of further losses towards 104.30 if the bearish sentiment persists.
