AUD/JPY trades around the 93.70 mark, experiencing three consecutive days of mild declines. The pair remains above the 20-day Simple Moving Average, indicating limited downside potential.
Currently, the Relative Strength Index (RSI) is in negative territory, hovering near the mid-40s, which signifies weak bearish momentum. The Moving Average Convergence Divergence (MACD) remains positive, yet its flat histogram suggests insufficient directional strength.
Key Support And Resistance Levels
As long as it stays above the 20-day SMA, near 93.50, the short-term outlook leans slightly upwards. A drop below this level could lead to targets of 93.00 or 92.50, with resistance at 94.20 and the psychological level at 95.00.
The Australian dollar against the yen is hovering near 93.70, softening for three days straight, though not breaching key support levels. Despite these consecutive declines, it holds above the 20-day SMA, pointing to restrained downward movement.
Indicators paint a mixed picture. The RSI, sitting in the mid-40s, reflects mild bearish pressure, but not strong enough to signal a clear trend shift. At the same time, the MACD remains in positive territory—a promising sign—but its flat histogram indicates momentum is lacking for a decisive move in either direction.
There’s a clear threshold at 93.50, in line with the 20-day SMA. As long as the pair remains above this mark, short-term movements are expected to favour the upside. A break below, however, could open the way down to 93.00 or even 92.50. On the other hand, if upward momentum builds, challenges lie ahead at 94.20, followed by the psychological barrier of 95.00.
Market Factors To Watch
Given this setup, those trading price fluctuations should keep an eye on how the pair behaves around these levels. If it struggles to hold above 93.50, bearish positions could gain traction. Meanwhile, for those focusing on upswings, watching for sustained movement towards 94.20 may provide a firmer basis for optimism.
This week, external factors—such as broader risk sentiment and shifts in bond yields—may add layers of complexity. With momentum currently indecisive, confirmation from either a firm break lower or renewed strength above resistance will likely be needed before clearer opportunities emerge.
