AUD/JPY Price Analysis: Bearish Strength Intensifies, nearing critical low since March
|- AUD/JPY pair sustains a dominant bearish trend, eying significant support around 95.30.
- Daily indicators signal a possible market exhaustion with RSI dropping to 18.
- Pair spirals through the support level of 97.00, directing attention to the critical 95.30 support line.
On Friday, the AUD/JPY pair magnifies the bearish sentiment, recording substantial losses with a 5% weekly loss. The decreasing trading volume reinforces the apparent weakening interest among traders and with the pair breaking through the secondary support of 97.00, the market now keeps an eye on the critical 95.30 benchmark.
The Relative Strength Index (RSI) has dived drastically below the 30 mark and is now deep in the oversold zone. This extreme selling activity hints at a potential price reversal due to market exhaustion. Meanwhile, the Moving Average Convergence Divergence (MACD) continues printing red bars.
AUD/JPY daily chart
Currently, the AUD/JPY pair is trying to establish a strong base around the major support line at 95.30, which will be crucial in minimizing further losses. The loss of this line could send the pair spiralling further downwards towards 94.00 or even 93.00, while a bounce back could see the 99.00 - 101.00 marks functioning as strong resistance levels.
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