- Selling pressure dominates the daily chart, but indicators recovered on Tuesday.
- The hourly chart also shows an improvement that points to a possible recovery.
- With trading above key SMAs, long-term bullish sentiment could negate recent bearish trends.
The AUD/JPY pair is trading at 97.477, with an advance of 0.31%. Despite the gains, selling pressure appears to dominate in the short term, but the overall trend remains bullish. Indicators improve on the hourly chart.
On the daily chart, the AUD/JPY pair is showing negative momentum as the Relative Strength Index (RSI) is in negative territory. However, its upward slope suggests that buyers are recovering. The descending red bars on the moving average divergence (MACD) histogram further emphasize this bearish momentum, signaling that sellers currently dominate the market, but with a weakened grip.
AUD/JPY daily chart
On the hourly chart, the RSI is in positive territory, illustrating a recovery in recent hours. On the other hand, the MACD histogram shows a red bar, indicating that the resurgence could be short-lived.
AUD/JPY hourly chart
In a broader context, despite the negative near-term outlook, AUD/JPY remains bullish as it trades above its 100- and 200-day SMA. This suggests that the long-term positive trend could still overshadow the recent bearish moves. That said, buyers should not relax and must reclaim the 20-day moving average to resume their bullish path.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
