AUD/JPY Price Forecast: Pulls back from nine-day EMA near 97.50

• AUD/JPY may approach the psychological support level at 96.00.
• The bearish sentiment persists as the 14-day RSI continues to stay below the 50 mark.
• The currency cross could retest the nine-day EMA at the 97.26 level.

The AUD/JPY cross halts its two-day winning streak, trading around 97.00 during the Asian hours on Tuesday. The 14-day Relative Strength Index (RSI) remains slightly below the 50 level, indicating a bearish momentum is still in play. If the RSI rises above 50, it would signal an emergence of a bullish bias.

Additionally, a review of the daily chart indicates that the AUD/JPY cross remains below nine- and 14-day Exponential Moving Averages (EMAs). This suggests that short-term price momentum is weaker compared to the longer-term trend, signaling the potential for continued price weakness.

The initial support for the AUD/JPY cross is located at the psychological level of 96.00, followed by the four-month low at 95.52. A break below this level could strengthen the bearish bias and push the currency cross to navigate the area around its five-month low at 93.59, which was recorded on September 11.

On the upside, the AUD/JPY cross could test its primary resistance at the nine-day EMA of 97.26, followed by the 50-day EMA at the 98.05 level. A decisive break above this level would signal strengthening short-term price momentum, potentially driving the currency cross toward the six-month high of 102.41, last reached on November 7.

AUD/JPY: Daily Chart