The AUD/JPY pair remains subdued for the fourth consecutive session, hovering around 93.00 during Asian trading hours on Friday. A technical analysis of the daily chart indicates a downward movement within a descending channel, reinforcing a prevailing bearish sentiment.
The 14-day Relative Strength Index (RSI) stands at 30, suggesting oversold conditions and the potential for a short-term rebound. However, the currency pair remains below the nine-day Exponential Moving Average (EMA), signaling weak price momentum.
Currently, AUD/JPY is testing immediate support at 93.00, with the next key level at the lower boundary of the descending channel at 92.50. A decisive break below this range could intensify selling pressure, potentially driving the pair toward 90.13—the lowest level since May 2023—last observed on August 5, 2024.
On the upside, a move above the nine-day EMA at 94.46 could bolster short-term momentum, opening the door for a retest of the descending channel’s upper boundary at 96.00. Further gains may push the pair toward the 50-day EMA at 96.45.
Traders remain cautious as market sentiment weighs on the pair, with technical indicators suggesting a pivotal moment ahead.
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