The AUD/JPY pair is currently navigating around the 103.00 level, indicating a period of consolidation after a strong rally since early May. Daily chart indicators show a neutral sentiment, with the RSI at 49, suggesting no clear directional bias. However, signs of a bearish momentum are emerging, hinting at potential short-term bearish pressure or further consolidation. The pair is currently facing resistance at the key 20-day SMA at 103.90, making it challenging for the pair to recover.
The daily RSI analysis reveals a decline to 49, indicating a short-term bearish momentum for the AUD/JPY pair. Additionally, the MACD has started to print flat red bars, signaling steady selling activity in the market. If the pair continues to decline, the 100 and 200-day SMAs at 99.80 and 97.98, respectively, will act as support levels. On the other hand, any attempt by the bulls to push the pair above the 20-day SMA and towards the 105.00 level will face resistance. Failure to break these resistance levels could prolong the consolidation phase for the AUD/JPY pair.
In the event of further losses, the AUD/JPY pair has support at the 100 and 200-day SMAs located at 99.80 and 97.98, respectively. These levels could serve as buffers against significant downward movements. Conversely, if the bulls manage to push the pair above the 20-day SMA at 103.90 and towards the 105.00 level, they will encounter strong resistance. Failure to break through these resistance levels may lead to an extension of the consolidation phase for the AUD/JPY pair.
In conclusion, the AUD/JPY pair is currently in a consolidation phase around the 103.00 level, following a strong rally in previous weeks. Daily chart indicators suggest a neutral sentiment with a bearish bias emerging in the short term. The 20-day SMA at 103.90 is acting as resistance for the pair, making it challenging for the bulls to push higher. Support levels at the 100 and 200-day SMAs are in place to buffer against further losses, while resistance levels at the 20-day SMA and 105.00 level could prolong the consolidation phase. Traders should closely monitor these key levels and indicators to gauge the future direction of the AUD/JPY pair.
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