As the world’s top investment manager and financial market journalist, I bring you the latest update on the AUD/JPY pair. Despite a minor correction to the upside, the pair closed the week with losses exceeding 7% since June, signaling a continued bearish trend. The key support level at the 200-day SMA near 100.00 is crucial in preventing further declines.
On Friday, AUD/JPY saw a slight recovery, ending at 100.79 with a 0.15% increase. However, sellers maintain control, resulting in a 4.30% loss for the week. The bounce may provide a temporary relief for bears, potentially leading to further corrective movements in the near future.
The daily RSI has shown a slight increase to 23, indicating a possible easing in bearish momentum but still remaining in the oversold territory. The MACD also reflects ongoing selling pressure with flat red bars.
Technical Analysis
Looking at the daily chart, the short-term bearish trend persists as the pair struggles below the 200-day SMA after losing the 100-day SMA. The support at the 200-day SMA is crucial for potential bullish momentum, although the RSI signals oversold conditions.
For the future, maintaining support at 100.00 is essential, with downside levels at 99.50 and 99.30. Buyers need to surpass the immediate resistance at 101.00 and target 102.70, where the 100-day SMA converges to offset potential losses.
Analysis Breakdown
In simple terms, the AUD/JPY pair is facing a bearish trend with a minor correction. The key level at 100.00 is important for support, while resistance is seen at 101.00 and 102.70. Traders should watch for potential bullish signals if the pair manages to hold above 100.00 and break above the resistance levels.