AUD/JPY Price Analysis: Bulls must regain the 20-day SMA to avoid further losses

  • The AUD/JPY daily RSI shows a slight upward trend that is still above the middle range.
  • The Hourly chart displays a mixed emotion with negative momentum represented by the MACD bars and frequent fluctuations in the RSI.
  • The bulls’ primary objective is the 20-day SMA at 99.30.

Through a 0.27% increase and a Wednesday closing price of 99.24, the AUD/JPY demonstrated a more resilient position. The pair shows a predominately positive perspective, solidly standing above the important Simple Moving Averages (SMAs), despite the recent decline. But the latest decline below the 20-day SMA improved the short-term picture for the bears.

The Relative Strength Index (RSI) pair shows a minor positive trend on the daily chart. It fell almost to the 50 level, but it bounced back and stayed in positive territory, circling around 52. A possible change in momentum is indicated by the Moving Average Convergence Divergence (MACD), which displays increasing red bars.

AUD/JPY daily chart

A mixed trend is revealed by the hourly RSI. While earlier values fluctuated between positive and negative territory, suggesting shifting market momentum, the most recent measurement of 53 indicated a favorable trend. Flat red bars on the hourly MACD indicate a consistent negative momentum.

AUD/JPY hourly chart

Looking at the bigger picture, the fact that the AUD/JPY is above both the 100-day and 200-day SMA indicates a strong long-term bullish trend. The positive view won’t be threatened by any notable movements today that maintain the cross above current levels, although some short-term losses should be anticipated as the bears gain traction.

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