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.More By This Author:EUR/CAD Price Forecast: Bullish Continuation Pattern Forming GBP/USD Consolidates Below One-Year Top, Looks To UK CPI For Fresh Directional Impetus AUD/JPY Recovers Further From Over Two-Week Low, Lacks Bullish Conviction
