AUD/JPY Price Analysis: Pair sees mild losses, downtrend shows slowing momentum
|- AUD/JPY eases to 106.80, still under the 20-day SMA support.
- Downward trajectory continues, yet with a slackening pace as the bearish sentiment seems to be decelerating.
- As bears lose steam the pair might side-ways trade in the next sessions.
In Tuesday's session, the AUD/JPY pair recorded a slight decline to 106.70, following up on the gradual declining trend from last week. However, the bearish momentum seems to be flattening as suggested by the shape of the daily candles, following a four-day losing streak. As such, while the pair is projected to maintain its descent, a slowdown in bearish activity may be approaching.
The daily Relative Strength Index (RSI) for the AUD/JPY pair now stands at 51 while the daily Moving Average Convergence Divergence (MACD) prints flat red bars, implying that the selling activity is easing.
AUD/JPY daily chart
Taking a wider view, the AUD/JPY pair seems to maintain a bearish tendency, further accentuated by its position below the 20-day Simple Moving Average (SMA) support. Should the downward movement proceed, the immediate support levels at 106.50 and 106.00 remain the critical markers to watch. On the flip side, to limit further potential losses, buyers should aim to retrieve the 107.00 level, the 107.30 zone (20-day SMA), and then target the 108.00 barrier as a signal for recovery.
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