The AUD/JPY currency pair is currently experiencing a pullback, trading around the 97.00 level. After a brief two-day rally, the pair is facing bearish pressure as it hovers near the nine-day Exponential Moving Average (EMA) at approximately 97.26. The persistent bearish sentiment is indicated by the 14-day Relative Strength Index (RSI), which remains below the neutral 50 level. A movement above this level could suggest a potential shift toward bullish momentum.
Analysis of the daily chart shows that the AUD/JPY pair is trading beneath both the nine-day and 14-day EMAs, reflecting weaker short-term momentum in comparison to the longer-term trend. This situation raises concerns about the possibility of ongoing price declines.
Support levels for the AUD/JPY are critical at this juncture, with the first psychological barrier located at 96.00. Should the pair break through this level, it could open the door to further declines, potentially targeting the four-month low of 95.52. A significant breach below this threshold could reinforce bearish sentiment, driving the currency pair towards its five-month low of 93.59, which was last recorded on September 11.
On the flip side, if the AUD/JPY manages to rally, it will first encounter resistance at the nine-day EMA around 97.26, with a more significant barrier at the 50-day EMA near 98.05. A sustained breakout above this latter level would indicate a resurgence of short-term momentum and could propel the pair toward a six-month high of 102.41, previously reached on November 7. As market conditions evolve, traders will be closely monitoring these critical support and resistance levels for future price developments.
