AUD/JPY was trading near the 93.00 level ahead of the Asian session, recovering from three consecutive days of declines. Despite this rebound, the pair is still below important resistance, and technical indicators suggest ongoing bearish pressure.
Technical indicators show mixed signals. The Relative Strength Index (RSI) has increased sharply but remains in negative territory, indicating a lack of strong bullish momentum. The Moving Average Convergence Divergence (MACD) shows decreasing red bars, implying that while selling pressure is easing, it has not completely disappeared.
Key Support And Resistance Levels
Resistance levels are currently at approximately 93.50 and 94.00. On the downside, immediate support is at 92.50, with stronger support around 92.00. The 20-day Simple Moving Average (SMA) at 95.00 is important for a potential broader trend change.
With the pair hovering around 93.00, traders have seen some recovery after days of selloff, but there are still barriers ahead. It has bounced back, but not enough to suggest the mood has shifted entirely. The technical side gives mixed signals, and that is what makes this situation less clear-cut.
We see the RSI pushing higher, but it has not yet crossed into a favourable zone. That tells us buyers are stepping in, though not forcefully enough to turn things around completely. Meanwhile, the MACD histogram is showing a decline in selling pressure, meaning the worst of the drop may be over, but the possibility of further weakness remains.
On the price action side, resistance appears to be forming near 93.50 and again around 94.00. If the pair does not push above those levels, sellers could regain control. On the flip side, the first area to watch if the price turns lower is 92.50, followed by 92.00 as a more solid floor where buying could emerge.
Broader Trend Considerations
At the broader level, the 20-day SMA at 95.00 stands out as a mark that would indicate a more widespread shift in direction. Without a move above it, sellers may continue viewing rallies as opportunities rather than a structural change.
For traders involved in derivatives, this kind of back-and-forth movement presents both opportunities and risks. Prices moving between support and resistance levels can create trading chances, but without a decisive break, these moves might be short-lived. Watching how price reacts at the mentioned zones in the coming sessions will help in determining whether a sustainable trend change is on the horizon or whether pressure persists.
