As the AUD/JPY pair reaches a new low below 100, the bearish trend intensifies with a fifth consecutive losing day. The 200-day SMA near 100.00 is the key level to watch for potential further losses.
During Thursday’s session, the AUD/JPY pair dropped by 0.54% to hit 100.55 and reached a low of 99.22. This confirms the dominance of sellers and reinforces the short-term bearish outlook as the pair hits a new seasonal low.
The daily RSI has fallen to 21, indicating a growing bearish momentum. The MACD also shows continuous selling pressure, but signs of oversold conditions may suggest a potential correction in the near future.
AUD/JPY Daily Chart
Looking at the bigger picture, the short-term bearish momentum persists for AUD/JPY. After breaking below the 100-day SMA, the pair found support at the 200-day SMA, indicating a possible correction as it enters oversold territory.
To prevent further losses, the pair must maintain support at the 200-day SMA around 100.00. Key levels to watch on the downside are 99.50 and 99.30, while buyers should target resistance at 101.00 and 102.70 for a potential recovery.
Analysis:
The AUD/JPY pair is currently in a strong downtrend, with sellers in control and bearish momentum increasing. Traders should be cautious of further losses, but signs of oversold conditions may indicate a potential correction in the near term. Key levels to watch are the 200-day SMA at 100.00 for support and resistance at 101.00 and 102.70 for a possible recovery.