The AUD/JPY pair continues to face downward pressure as it slipped towards 106.90 in Monday’s trading session, breaching the 20-day Simple Moving Average (SMA) support. This follows a bearish trend that started last week Thursday when the pair dropped significantly from above 109.00. With sellers maintaining their dominance, a bearish outlook is projected for the next few sessions.
The daily Relative Strength Index (RSI) for the AUD/JPY pair currently stands at 53, showing a slight decrease from last week’s high of 80 and moving towards the bearish zone. Despite this shift, the market remains in positive territory, maintaining a neutral stance. Furthermore, the daily Moving Average Convergence Divergence (MACD) indicator is showing rising red bars, indicating potential weakness in the pair.
Looking at the broader picture, the AUD/JPY pair appears to have a bearish sentiment as it remains below the 20-day SMA support. If the downward momentum continues, key support levels at 106.50 and 106.00 will be crucial levels to watch. However, to counteract further potential losses, buyers will need to push the pair above the 107.00 level (20-day SMA) and target the 108.00 barrier to signal a possible recovery.
Overall, the AUD/JPY pair is currently facing bearish pressure as it struggles to maintain support levels and faces increasing weakness on the technical indicators. Traders and investors will need to closely monitor the price action in the coming sessions to gauge the potential direction of the pair. While the bearish sentiment prevails, a break above key resistance levels could signal a possible reversal in the trend, but cautious trading is advised.
