- The AUD/JPY pair fell to 96.45 on Friday, resuming losses after three sessions and recording gains.
- However, technical indicators suggest a shift towards neutral territory – RSI is exiting the oversold zone and MACD is showing descending red bars.
- Despite the losses, the pair will close the week with a gain of almost 1%.
The AUD/JPY pair fell 0.65% to 96.45 in Friday’s session, extending its recent downtrend. Despite this downward move, technical indicators are showing signs of a potential change in market sentiment.
The Relative Strength Index (RSI) has exited oversold territory below 30 and is currently hovering around 33. This suggests that AUD/JPY is no longer considered oversold and is heading towards neutral ground. The Moving Average Convergence Divergence (MACD) indicator is also showing decreasing red bars, indicating that bearish momentum may be fading.
AUD/JPY Daily Chart
Based on these technical observations, it is possible that the AUD/JPY pair is entering a consolidation phase. The pair could continue to trade in a range, with circumscribed downside potential due to rising support at 96.00 and 95.00. On the upside, resistance at 97.00, 98.00, and 100.00 could cap any significant upside moves.
