The AUD/JPY pair is currently experiencing a downward trend due to ongoing profit-taking activities. This has caused the pair to approach the reinforced 20-day SMA support level. If the bulls can establish strong support at this level, the next potential target is within the 104.50-105.00 price range. Despite the descent, the pair has bounced back above the 104.00 mark, indicating that the 20-day SMA is acting as a robust support line.
On a daily scale, the RSI for the AUD/JPY pair stands at 56, slightly lower than the previous day’s reading of 57. This suggests a marginal downward trend and a potential easing of the previous upward momentum. The MACD is printing flat red bars, indicating a stable selling momentum. The daily chart for AUD/JPY illustrates a consolidation phase, with trading activity centered around the 20-day SMA. The range of 102.00-104.00 could indicate further sideways trading as bulls consolidate gains from May’s rally.
Despite the current consolidation phase, there are indications that the bulls may be preparing for the next upward movement. This could potentially lead to a retest of the 104.50-105.00 range. However, a breach of the 20-day SMA could attract bears, with additional support levels at 102.60, as well as the long-term 100 and 200-day SMAs located in the 100.00 and 98.00 zones.Overall, the AUD/JPY pair is in a consolidation phase, with the potential for further upward movement once the bulls consolidate their gains and establish strong support levels.
