The AUD/JPY pair experienced a pullback on Thursday, dipping towards 104.00 as buyers took profits after the pair’s recent surge above the 20-day Simple Moving Average (SMA). This key technical level, once a resistance point, is now under scrutiny as potential support to prevent further declines. However, the ongoing consolidation phase suggests a lack of clear direction in the short term.
Technical Indicators Signal Shifting Momentum
The daily Relative Strength Index (RSI) for AUD/JPY has declined from 57 to 54, indicating a slight weakening in bullish momentum. Meanwhile, the Moving Average Convergence Divergence (MACD) indicator is showing flat red bars, suggesting a stabilization of selling pressure.
Consolidation and Potential Range
The current price action suggests a consolidation phase for the AUD/JPY pair, with the 20-day SMA acting as a pivotal support level. The pair could trade within a range of 102.00-103.00 in the coming sessions, reflecting a continuation of sideways movement as bulls consolidate gains from the May rally.
However, the decrease in selling momentum could be a sign that bulls are preparing for another upward push, potentially retesting the 104.50-105.00 resistance zone.
