AUD/JPY Plunges to Lowest Level Since May, Down 4% in Four Days – Bearish Trend Continues
In a dramatic turn of events, the AUD/JPY pair has extended its losses, dropping to 101.20, marking its lowest level since early May. The bearish short-term trend has only intensified, with the pair losing over 4% in just four days.
Wednesday’s trading session saw the AUD/JPY pair tumble by 1.50% to hit 101.20, underscoring the dominance of sellers and reinforcing the prevailing bearish outlook. The daily Relative Strength Index (RSI) is at 26, indicating a deepening of bearish momentum, while the Moving Average Convergence Divergence (MACD) continues to show rising red bars, reflecting ongoing selling pressure.
On the daily chart, the AUD/JPY remains well below the 20-day Simple Moving Average (SMA), with the potential for a further decline towards the 200-day SMA after breaking below the 100-day SMA. Immediate support is seen around 101.00, a level that buyers must defend to prevent a deeper pullback. To initiate a recovery, bulls need to target the 102.70 area, where the 100-day SMA converges.
In conclusion, the AUD/JPY pair is in the midst of a strong bearish trend, with significant downside potential. Traders should monitor key support and resistance levels closely to navigate the current market conditions effectively.