On Friday, the AUD/JPY pair was spotted hovering around the 94.30 mark just before the Asian trading hours, making its way toward the lower spectrum of the daily trading range. The indicators present a mixed bag of signals; nonetheless, moving averages suggest a broader downward trend is prevailing. Support can be found near 94.00 and 93.88, while resistance edges just above 94.40, though indicators remain conflicted, hinting at a bearish lean.
By the time the European session wrapped up on Friday, AUD/JPY had extended its downward move, hanging around the 94.30 area. This pullback highlights an uptick in selling pressure. Although some momentum indicators hover around neutral or even tilt slightly positive, the overarching technical outlook suggests a bearish leaning for the near term.
Taking a closer look at the indicators, the Relative Strength Index (RSI) has dipped below the midway point of 50, yet maintains a neutral stance. Interestingly, the MACD is slightly giving off buy signals, indicating the possibility of a brief corrective phase. Nonetheless, the selling momentum is bolstered by the Bull Bear Power reading at 0.641, and the Williams Percent Range isn’t providing any clear reversal hints, maintaining its neutral position.
Focusing on moving averages presents a nuanced picture. The short-term 20-day Simple Moving Average (SMA) remains on the side of buying at 94.02, offering a form of dynamic support. On the contrary, both the 10-day Exponential Moving Average (EMA) at 94.45 and SMA at 94.58, coupled with the longer-term 100-day SMA at 96.85 and the 200-day SMA at 98.70, suggest bearish tones, indicating any upward potential remains limited unless there’s a significant shift in structure.
Support levels are poised at 94.16, 94.02, and lower at 93.88. Conversely, resistance starts to appear near 94.35, 94.42, and 94.45. These marks align closely with key short-term moving averages and might serve as strategic areas for selling should the bulls attempt to make a comeback.
