AUD/JPY Price Analysis: Bears Saw Deepened Losses As Pair Hit Multi-Week Lows
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- The AUD/JPY currency pair extended its decline on Friday, as it fell sharply and broke below the 20-day SMA.
- The RSI remained in negative territory, which seemed to reflect intensified, bearish momentum.
- The MACD histogram printed rising red bars, which signaled an increase in downside pressure.
The AUD/JPY currency cross continued its downward trajectory on Friday to the 94.80 level, as it posted sharp losses and broke through key technical support levels. The pair was seen trading at its lowest level in over two weeks, which seemed to signal that bears were firmly in control. The sustained drop below the 20-day Simple Moving Average (SMA) highlighted the shift in market sentiment, as sellers dominated the recent trend.
Technical indicators reinforced this negative outlook. The Relative Strength Index (RSI) plunged deeper into negative territory, which seemed to suggest that bearish momentum was accelerating and that the pair could remain under pressure in the near-term.
Meanwhile, the Moving Average Convergence Divergence (MACD) histogram illustrated some rising red bars, which signaled an increase in downside momentum as sellers continued to gain ground.
Looking ahead, unless the pair stages a strong recovery back above the 20-day SMA in the coming days, this bearish outlook is likely to persist in further trading. The next support zone could emerge around the 94.50 area, while any attempt at recovery would likely face resistance near the 20-day SMA near the 96.00 mark. A decisive break above this level would be needed to shift sentiment and provide buyers with a foothold. For now, the bears have remained in command.
AUD/JPY Daily Chart
(Click on image to enlarge)
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