AUD/JPY Price Analysis: Plunges to a fresh low amid steep four-day losing streak
|- AUD/JPY extends losses, plunging to 101.20, marking the lowest level since early May.
- The bearish short-term trend continues to strengthen as the pair records four losing days in a row, shedding over 4% since last week.
In Wednesday's trading, the AUD/JPY pair has prolonged its downward spiral, tumbling by 1.50% to reach 101.20. This highlights the prominence of the sellers and further underscores the prevailing bearish short-term outlook as the pair reaches a new season low.
The daily Relative Strength Index (RSI) stands at 26, diving deeper below Tuesday's reading of 32, denoting the amplification of the bearish momentum. The same trend is signified by the Moving Average Convergence Divergence (MACD) which persists in recording rising red bars, signaling a continuation of selling activity, despite being in the oversold territory which hints at an impending correction.
AUD/JPY daily chart
When viewed from a wide-angle perspective, the AUD/JPY's short-term bearish momentum appears to persist, with the pair far below the 20-day Simple Moving Average (SMA). After losing the 100-day SMA, the pair seems to be approaching the 200-day SMA, raising prospects of an extended bearish outlook. Looking forward, immediate support levels have been found around 101.00, a level which buyers must strive to hold to ward off a deeper retracement. In terms of recovery, the bulls will have to aim for the 102.70 area, where the 100-day SMA converges, to mitigate potential losses.
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