AUD/JPY Price Analysis: Severe losses seen with indicators deep in negative territory

AUD/JPY drops towards 105.00, notably below the 20-day SMA.
The downtrend continues, now showing sharp momentum as bearish sentiment increases.
With intensified bearish momentum, the pair may see a slight upward correction.

Patricio Martín FXStreet

In Wednesday's session, the AUD/JPY pair recorded a significant drop to 105.05, marking an extended five-day losing streak from last week. This decline is a significant drop from Tuesday's close of 106.80, indicating a deepening bearish momentum for the pair. This continued downtrend, which is marked by indicators being deep in negative terrain, suggests that the pair may see further losses in the short term but a correction is also in the table.

The daily Relative Strength Index (RSI) for AUD/JPY now stands at 40, as the pair has reached new lows since mid-June. Simultaneously, the daily Moving Average Convergence Divergence (MACD) prints rising red bars, implying an intensified selling activity.

AUD/JPY daily chart

In the broader picture, the AUD/JPY pair seems to maintain its bearish tendency, much highlighted by its position notably below the 20-day Simple Moving Average (SMA) supports. As the pair proceeds its descent, immediate support levels at 105.00 and 104.30 become the crucial markers to watch. To avoid further potential losses, buyers must look to reclaim the 106.00 mark and further target the resurrection of the 106.50 level.

Author

Patricio Martín

FXStreet

Patricio is an economist from Argentina passionate about global finance and understanding the daily movements of the markets.

EUR/USD slumps below 1.1800 on hawkish Fed Minutes, eyes on ECB succession

The EUR/USD pair tumbles to a near two-week low around 1.1785 during the early Asian session on Thursday. The US Dollar strengthens against the Euro on hawkish FOMC minutes that revived speculation about potential interest rate hikes if inflation remains elevated.

GBP/USD extends decline as weak jobs data bolsters BoE rate cut bets

The Pound Sterling continued to backslide under sustained pressure on Wednesday, following through after the UK employment report on Tuesday showed a labour market deteriorating faster than expected.

Gold rises above $4,950 as US-Iran tensions boost safe-haven demand

Gold price holds positive ground near $4,985 during the early Asian session on Thursday. The precious metal recovers amid shifts in geopolitical sentiment, boosting safe-haven demand. Traders will keep an eye on the release of US Initial Jobless Claims, Pending Home Sales data, and the Fedspeak later on Thursday.

Zora launches attention markets on Solana network

Zora has launched a new attention markets feature on the Solana network, allowing users to trade and speculate on emerging online cultural trends.

Mixed UK inflation data no gamechanger for the Bank of England

Food inflation plunged in January, but service sector price pressure is proving stickier. We continue to expect Bank of England rate cuts in March and June. The latest UK inflation read is a mixed bag for the Bank of England, but we doubt it drastically changes the odds of a March rate cut.

Sui extends sideways action ahead of Grayscale’s GSUI ETF launch

Sui is extending its downtrend for the second consecutive day, trading at 0.95 at the time of writing on Wednesday. The Layer-1 token is down over 16% in February and approximately 34% from the start of the year, aligning with the overall bearish sentiment across the crypto market.