• The AUD/JPY pair has drifted downwards as we head into the Asian trading day, marking its second day of losses and hovering around the 93.00 level.
• However, the selling pressure seems to be easing, and technical indicators are hinting that buyers might try to push back or at least stabilize things.

The AUD/JPY pair continued its slide for a second day on Friday, settling around 93.30. Sellers remained in charge, pushing the price lower. Even with this downward trend, there are emerging signs that the selling momentum is losing steam, suggesting we could see a period of stability or even a short-term recovery soon.

Looking at the technical indicators, the Relative Strength Index (RSI) is still below the neutral line but its downward movement is becoming less pronounced. This suggests that the sellers might not be as aggressive as before. Similarly, the Moving Average Convergence Divergence (MACD) keeps showing smaller red bars, reinforcing the idea that the downward momentum is weakening. This technical picture might pave the way for a potential rebound or, at the very least, a period of sideways trading before the pair decides its next direction.

From a technical perspective, we’re seeing support building around the 92.80 area, with even stronger support around 92.50. On the upside, the 20-day Simple Moving Average (SMA), currently at 95.00, is acting as significant resistance. If the price breaks above this SMA, it could signal a shift towards bullish momentum. However, if buyers can’t overcome this resistance, we could see continued downward pressure, potentially pushing the pair towards the 92.00 level.

AUD/JPY daily chart