AUD/JPY Price Analysis: Bears Extended Control, But Downside Momentum Weakened

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  • The AUD/JPY currency pair moved lower ahead of the Asian session on Friday, as it extended its losing streak to two days as the pair traded near the 93.00 area.
  • Selling momentum appeared to be fading, as technical indicators suggested that the bulls could attempt a rebound or initiate sideways movement.

The AUD/JPY currency pair experienced a second consecutive day of losses on Friday, as the duo landed at around the 93.30 mark while sellers maintained control and drove prices lower. Despite this bearish pressure, downward momentum showed signs of easing, which may have been a hint at the possibility of stabilization or even a near-term bounce.

The Relative Strength Index (RSI) remained in negative territory, but only with a mild decline, which may have suggested that selling pressure decreased compared to previous sessions. Meanwhile, the Moving Average Convergence Divergence (MACD) continued to print decreasing red bars, indicating that downside momentum lost steam. This technical setup could, in the coming days, open the door for a potential recovery, or at least a consolidation phase before the next directional move.

On the technical front, support appeared to form near the 92.80 zone, with a stronger floor seen at the 92.50 mark. The 20-day Simple Moving Average (SMA), located at the 95.00 level, served as a major resistance point. A break above this level in the coming days could shift the outlook in favor of buyers, while failure to regain ground could result in continued pressure toward the 92.00 handle.


AUD/JPY Daily Chart

(Click on image to enlarge) 


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