In the Friday trading session, the AUD/JPY exhibited a temporary rebound, reaching 96.60 and marking a 0.40% gain. However, despite this intraday recovery, the pair is poised to conclude the week with a 0.70% loss, reflecting the prevailing bearish sentiment. Recent sessions have witnessed bears exerting dominance, pushing the pair to its lowest levels since mid-December. While there seems to be a momentary respite allowing for an upside move, the weekly outlook remains marked by a bearish tone, indicating potential for further downside as the cross notches a second consecutive weekly decline.
Analyzing the daily chart, the influence of bears is evident as the pair trades below the 20-day Simple Moving Averages (SMAs). Despite this, a broader perspective reveals that bulls maintain control. The Moving Average Convergence Divergence (MACD) indicates a period of consolidation with flat red bars, possibly signifying a temporary pause in bearish momentum. The Relative Strength Index (RSI) adds another dimension, displaying a positive slope within negative territory, suggesting a potential breather for bears.
On the weekly chart, the momentum appears to favor the bears, as evidenced by the RSI descending into positive territory and the MACD displaying red bars. This combination suggests an accumulating selling momentum. Over the past two weeks, the cross has experienced a decline of nearly 1%, extending a two-week losing streak since mid-January. The technical indicators on the weekly timeframe hint at the potential continuation of this bearish trend.