- The AUD/JPY bears remain in control despite Tuesday's gap-up.
- The pair gained significant ground but faced firm resistance at 94.50.
- The RSI and MACD indicate bearish momentum is waning.
On Tuesday's session, the AUD/JPY pair gapped up by 1.20% to 94.70, recovering some of the losses seen in the previous sessions. However, the pair seems to have entered in a consolidation period, and the bears remain in control.
The Relative Strength Index (RSI) is currently at 18, indicating an oversold condition. The Moving Average Convergence Divergence (MACD) is showing decreasing red bars, and the recovery of the RSI indicates a loss of bearish momentum.
AUD/JPY daily chart
The AUD/JPY pair is currently trading below its 20,100, and 200-day Simple Moving Averages (SMA), which confirms an overall bearish outlook. A break below the 94.60 level could open the door to a further decline, with the next major support level at 94.00. On the upside, the pair faces resistance at 94.50 - 95.50. A break above might improve somewhat the negative outlook.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
NZD/USD gathers strength above 0.5950 after better-than-expected New Zealand employment data
The NZD/USD pair extends the rally near 0.5980 during the early Asian session on Wednesday. The further upside of the New Zealand Dollar is bolstered by the upbeat New Zealand employment report. Traders trim bets on RBNZ, pivoting to rate cuts next week.
AUD/USD consolidates above 0.6500 ahead of Chinese trade data
AUD/USD holds above the 0.6500 psychological mark during the Asian session on Wednesday in the wake of the RBA's hawkish tilt on Tuesday. This, along with signs of stability in the financial markets, offers support to the Aussie. Spot prices remain confined in the previous day's broader trading range.
Gold falls almost 1% amid strong US Dollar, high yields
Gold price dropped below $2,400 on Tuesday, extending its losses for the second consecutive day as US Treasury yields rose amid an improvement in market mood. Rising tensions in the Middle East capped losses in the golden metal.
Bitcoin traders should watch these metrics after the market dump on Black Monday
Bitcoin is up nearly 4% on Tuesday after recovering quickly from Black Monday's crash. As the market attempts a recovery, a few key metrics and indicators explored in this article could prove crucial in the coming weeks.
Some relief but not out of the woods
Markets got a little relief on Tuesday. Unfortunately, most of that relief was simply about the bleeding slowing down rather than any clear catalysts to suggest investor risk appetite was turning back up.