AUD/JPY continues its losing streak due to a strengthening bearish bias.
A corrective rebound could be indicated if the 14-day RSI breaks below the 30 level.
The currency cross may navigate the region around its four-month low of 93.59.
The AUD/JPY cross extends its losing streak for the fifth consecutive day, trading around 98.40 during the European hours on Wednesday. The 14-day Relative Strength Index (RSI) is currently above 30, indicating a bearish market trend. If the RSI drops below 30, it would signal an oversold condition, potentially leading to a corrective rebound.
Additionally, an analysis of the daily chart suggests that the nine-day Exponential Moving Average (EMA) crosses below the 50-day EMA, suggesting a bearish signal. This crossover indicates that the short-term momentum is weakening relative to the longer-term trend, which could signify the continued price weakness.
On the downside, the primary support for the AUD/JPY cross is located around the psychological level of 97.00, followed by the next support at 96.00 level. A decisive break below the latter could open the gates for the currency cross to navigate the region around its four-month low of 93.59, which was recorded on September 11.
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