The AUD/JPY currency pair paused its two-day rally during the Asian session on Tuesday, trading around the 97.00 level. The 14-day Relative Strength Index (RSI) remains slightly below the 50 mark, indicating that bearish momentum is still in control. A rise above the 50 threshold could signal a shift toward a more bullish outlook.
A review of the daily chart reveals that the AUD/JPY cross remains below the nine-day and 14-day Exponential Moving Averages (EMAs), suggesting weaker short-term momentum compared to the longer-term trend. This reinforces the possibility of continued downward pressure on the pair.
Immediate support is seen at the psychological level of 96.00, followed by a four-month low at 95.52. A break below this support could intensify the bearish bias, potentially pushing the currency pair toward its five-month low of 93.59, last seen on September 11.
On the upside, the pair could face resistance at the nine-day EMA, currently at 97.26, with further resistance at the 50-day EMA around the 98.05 level. A sustained break above the 98.05 mark would signal a strengthening of short-term momentum, potentially driving the AUD/JPY cross toward the six-month high of 102.41, last recorded on November 7.
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