The AUD/JPY pair has experienced significant losses, dropping by more than 1% and showing signs of a possible shift in momentum. Daily indicators, including the Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD), suggest a bearish tone with the currency pair plunging beyond the critical 100.30 support level.
Despite a slight recovery on Monday, dwindling trading volume has reinforced the downward sentiment, with the AUD/JPY pair now hovering around the 97.00 support level. The RSI indicates extreme selling activity, potentially signaling a reversal, while the MACD maintains a bearish momentum.
Expert Analysis: What to Expect Next
The AUD/JPY pair is currently seeking support at the crucial 97.00 level, which is essential in preventing further losses. A breach of this key level could result in a deeper decline, while a rebound may lead to resistance at the 98.70 – 100.00 levels.
Expert Analysis Breakdown:
- Significant losses for AUD/JPY pair, down by more than 1%
- RSI indicates extreme selling activity, potential for reversal
- MACD maintains bearish momentum
- Support at 97.00 critical for preventing further decline
- Resistance at 98.70 – 100.00 levels in case of rebound
Overall, investors should closely monitor the AUD/JPY pair as it navigates through key support and resistance levels. The current bearish momentum suggests a cautious approach, while a potential reversal could present trading opportunities in the near future.