AUD/JPY Price Analysis: Downward Pressures Resumed, Pair Closed Its Weakest Week Since April

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• The AUD/JPY currency pair resumed its decline on Friday, as it fell to the 105.25 threshold, marking one of the lowest levels in over a month.
• The recovery experienced on Thursday was short-lived as selling pressures resumed, augmenting the prevalent negative outlook.

In Friday's trading session, the AUD/JPY currency pair resumed its downtrend, declining by around 0.20% to reach the 105.25 mark. The resumption of this bearish trend seemed to suggest that the rebound registered previously on Thursday was more corrective rather than indicative of a trend reversal. This movement sustained the dominance of the bears and reinforced the existing negative outlook, as the pair closed with a 1.60% weekly loss.

The daily Relative Strength Index (RSI) for the AUD/JPY pair stood at 42, slightly below Thursday's value, which could suggest a continuation of the recent negative momentum. A similar pattern in the Moving Average Convergence Divergence (MACD) that continued to print rising red bars seemed to suggest a continuation of selling activity, despite the minor rebound seen previously.

AUD/JPY Daily Chart

On a broader perspective, the AUD/JPY pair's short-term bearish trajectory appeared to persist, as its price remained below the 20-day Simple Moving Average (SMA). Looking ahead, immediate support levels appear to have formed around the 105.00 mark, which the buying pressure needs to maintain to fend off a deeper correction. To moderate further potential losses, bulls must aim for the recovery of the 106.00 level, and subsequently, the 106.50 mark.

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