The AUD/JPY currency pair stalled its two-day winning streak on Tuesday, trading around the 97.00 level during Asian hours. The 14-day Relative Strength Index (RSI) remains just below the 50 mark, indicating that bearish momentum is still dominant. A rise above the 50 level would signal a potential shift toward a bullish outlook.
A closer look at the daily chart shows the AUD/JPY pair trading below the nine- and 14-day Exponential Moving Averages (EMAs), suggesting that short-term momentum remains weak compared to the broader trend. This technical setup hints at the possibility of further downside movement.
Support and Resistance Levels in Focus
Initial support for the AUD/JPY cross is seen at the psychological 96.00 level, followed by a four-month low of 95.52. A break below this support could reinforce the bearish sentiment and drive the pair closer to its five-month low of 93.59, recorded on September 11.
On the upside, the pair faces resistance at the nine-day EMA of 97.26, with further hurdles at the 50-day EMA near 98.05. A decisive breakout above this level would suggest strengthening short-term momentum, with the potential to test the six-month high of 102.41, last reached on November 7.
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