AUD/JPY Price Analysis: Bears remain in control, despite Tuesday's rally
- The AUD/JPY bears remain in control despite Tuesday's gap-up.
- The pair gained significant ground but faced firm resistance at 94.50.
- The RSI and MACD indicate bearish momentum is waning.
On Tuesday's session, the AUD/JPY pair gapped up by 1.20% to 94.70, recovering some of the losses seen in the previous sessions. However, the pair seems to have entered in a consolidation period, and the bears remain in control.
The Relative Strength Index (RSI) is currently at 18, indicating an oversold condition. The Moving Average Convergence Divergence (MACD) is showing decreasing red bars, and the recovery of the RSI indicates a loss of bearish momentum.
AUD/JPY daily chart
The AUD/JPY pair is currently trading below its 20,100, and 200-day Simple Moving Averages (SMA), which confirms an overall bearish outlook. A break below the 94.60 level could open the door to a further decline, with the next major support level at 94.00. On the upside, the pair faces resistance at 94.50 - 95.50. A break above might improve somewhat the negative outlook.