The AUD/JPY pair experienced a minor correction to the upside, closing at 100.70, but overall recorded a losing week with a 4.30% decline. The short-term bearish trend continues, as the pair has lost over 7% since June. The key support level of the 200-day Simple Moving Average (SMA) near 100.00 is crucial in preventing further losses.
Despite a small recovery on Friday, the AUD/JPY pair remains under the control of sellers, with the potential for further corrective movements in the near future. The daily Relative Strength Index (RSI) has increased to 23, signaling a possible easing in bearish momentum, but remains in oversold territory. The Moving Average Convergence Divergence (MACD) shows persistent selling activity with flat red bars on the chart.
In a broader perspective, the short-term bearish trend of AUD/JPY is still intact, with the pair facing a hurdle at the 200-day SMA after losing the 100-day SMA. While support at the 200-day SMA may provide temporary relief for the bulls, the pair is still in oversold territory according to the RSI. To sustain its current levels, the pair needs to hold above the 200-day SMA at 100.00, with potential downside levels at 99.50 and 99.30. For a potential recovery, buyers should target surpassing the resistance at 101.00 and aim for 102.70 to offset potential losses.
