AUD/JPY consolidation near ¥109.49 support: Technical outlook
Australian Dollar vs Yen (AUD/JPY) is trading at ¥110.04 after moving modestly lower today. The pair remains below its key moving averages, signaling a weak tone in the immediate session.
Highlights
- AUD/JPY trades below key short-term and long-term moving averages, showing strong seller pressure across all time frames.
- Bearish momentum dominates as MACD, ADX, and intraday indicators signal high probability of further downside with low volatility.
- AUD/JPY fell 0.75% to ¥110.04 and is likely to remain in a range of ¥109.49 to ¥110.59 over the next 2 to 3 days, with a further drop more likely than a rebound.
Seller momentum dominates with resistance capping intraday rebounds
On the hourly chart, AUD/JPY is positioned below the MA-20, MA-50, and MA-200 levels, with the Ichimoku Kijun resistance identified at ¥110.72. MACD and ADX both highlight ongoing seller momentum, while RSI remains in sell territory. Stoch RSI and CCI do not indicate oversold conditions, staying neutral. Bull/Bear Power reflects intraday seller dominance, and the Awesome Oscillator confirms the prevailing negative momentum.
Downside risk elevated as bullish reversal prospects remain limited
Over the next two to three trading days, AUD/JPY is expected to remain constrained within a volatility band of ¥109.49 to ¥110.59. The probability of an upward reversal is very low, while the likelihood of a continued decline is high. If the price sustains above ¥110.72, a bullish rebound may unfold; however, a drop below ¥109.49 would likely accelerate downside momentum in the short term.
Earlier, analysts noted that AUD/JPY was under sustained selling pressure, with weak fundamentals and oversold technical signals maintaining a bearish outlook. The current analysis reinforces this view, highlighting persistent downside momentum and identifying ¥109.49 as a critical support level that traders should monitor for potential acceleration of losses in the near term.