The AUD/JPY currency pair maintained a soft tone on Monday, drifting toward the 88.50 level ahead of the Asian session. Despite a modest decline on the daily chart, the pair continues to be entrenched in a broader downtrend, remaining significantly below its key moving averages. Although there was limited intraday volatility, the overall technical setup signals ongoing bearish pressure.
Momentum indicators show a clear downside bias. The Moving Average Convergence Divergence (MACD) has issued a sell signal, and the Relative Strength Index (RSI) stands at 25.57, indicating neutrality but approaching oversold levels. While the Commodity Channel Index (CCI) at -309.10 could hint at potential buy signals, the broader trend remains firmly bearish, reinforcing the likelihood of further declines.
AUDJPY Extends Downtrend as Technical Indicators and Moving Averages Reinforce Bearish MomentumBearish Outlook Supported by Moving Averages and Resistance Levels, Downward Pressure Prevails
Moving averages provide additional support to the bearish outlook. The 20-day Simple Moving Average (SMA) at 93.546, 100-day SMA at 96.303, and 200-day SMA at 98.266 all show downward slopes, indicating sustained selling pressure. The 10-day Exponential Moving Average (EMA) and 10-day SMA, both positioned above 92.00, further constrain any upside movement, capping potential rallies.
Resistance levels are identified at 89.578, followed by 90.944 and the 10-day EMA near 92.169. On the downside, support may emerge near the lower boundary of the recent range around 86.13 if selling pressure continues. While oversold signals could lead to a short-term pause in the downtrend, the overall direction suggests that the path of least resistance remains to the downside.