The AUD/JPY currency pair extended its gains for the second consecutive day, trading around 98.20 during the Asian session on Monday. However, the 14-day Relative Strength Index (RSI) remains just below the 50 level, suggesting that bearish momentum persists. A rise above the 50 mark on the RSI could indicate the beginning of a bullish trend.
A closer look at the daily chart reveals that the nine-day Exponential Moving Average (EMA) remains below the 50-day EMA, signaling that short-term momentum is still weaker compared to the longer-term trend. This technical alignment suggests the possibility of continued weakness in the pair.
On the downside, initial support for AUD/JPY is seen at the psychological level of 98.00, followed by the nine-day EMA at 97.50. A break below 97.50 could pave the way for a deeper decline toward the four-month low of 93.59, recorded on September 11.
Conversely, on the upside, the pair could face resistance around the 50-day EMA at 98.92. A decisive move above this level could signal stronger bullish momentum, potentially propelling the cross toward its five-month high of 102.41, last seen on November 7.
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