AUD/JPY Price Analysis: Rebounds slightly, awaits continuation of correction

AUD/JPY shows a minor correction to the upside, landing at 100.70, yet records a losing week.
The short-term bearish trend continues, despite the minor gains, as the pair has lost more than 7% since June.
The 200-day SMA near 100.00 continues to be a key support level to prevent further losses.

In Friday's session, the AUD/JPY pair showed a minor recovery, rising by 0.15% to end at 100.79. Despite this, the overall control of sellers remains, as the pair closes on a 4.30% losing week, solidifying the bearish outlook. The bounce may be an indication of a possible breather for the bears and could suggest further corrective movements in the upcoming sessions.

The daily Relative Strength Index (RSI) saw an increase from its previous levels, reaching 23, hinting at a possible easing in the bearish momentum. However, it still firmly stays in the oversold territory providing a potential signal for the continuation of the correction. In sync, the Moving Average Convergence Divergence (MACD) continues to display flat red bars, indicating persistent selling activity.

AUD/JPY daily chart

Keeping a wider perspective, the short-term bearish trend of AUD/JPY remains intact. Having lost the 100-day SMA, the pair now encounters a major hurdle at the 200-day SMA. Despite the support here reinvigorating the bulls momentarily, it's crucial to note the pair remains in the oversold territory, based on its RSI.

Moving forward, the pair needs to maintain a footing at the 200-day SMA at 100.00, a vital support level. On the downside, levels to watch remain around the 99.50 and 99.30 marks. For a potential recovery, buyers should aim at surpassing the immediate resistance at 101.00 and target 102.70 points where the 100-day SMA converges to offset potential losses.

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