AUD/JPY is trading around 92.50, marking a third consecutive day of declines. The pair is under pressure, having difficulty remaining above 93.00 as bearish sentiment prevails.
From a technical standpoint, the RSI is nearing oversold levels, which may limit further downside. Meanwhile, the MACD is showing decreasing bearish momentum, indicating that selling pressure may be easing.
Key Support And Resistance Levels
Key support levels include 92.00, and a breach could lead to declines towards 91.50. Resistance is seen at 93.00, with stronger resistance near the 20-day Simple Moving Average around 95.00.
What we are witnessing now is a market struggling to hold its footing after three straight sessions of selling pressure. The downward move has placed the pair near 92.50, unable to maintain a position above 93.00, reflecting a stronger bearish presence.
From a technical perspective, the RSI is edging closer to oversold territory, suggesting that further selling may begin to slow. Typically, when the RSI reaches such levels, traders start to reassess their short positions, as the likelihood of a bounce increases. At the same time, the MACD is showing signs that bearish momentum is losing some of its strength, as the gap between the MACD line and its signal line narrows. This could be an early signal that selling interest is waning, and traders will be watching closely for any shifts in momentum.
Trading Strategy Considerations
For those monitoring potential downside risks, 92.00 stands as the next key level. If the pair falls below this mark, we should be prepared for further losses towards 91.50, which would be the next logical area for buyers to step in. On the other hand, if the pair manages to recover, it faces resistance at 93.00, with stronger resistance further up around the 20-day Simple Moving Average, close to 95.00. A break above these levels would suggest that sentiment is beginning to turn.
Traders should remain aware of these technical signals in the coming sessions, as they provide insights into where price movement may stabilise or reverse. Timing entries around these levels could be favourable given current indicators, but confirmation from additional price action will be critical.
