AUD/JPY Price Analysis: Bears gain ground and conquer the 20-day SMA

• AUD/JPY making a decisive downshift with a 0.95% drop, currently stationed at 96.50.
• As the bears push the cross below the 20-day SMA, the outlook turned negative for the cross.
• Despite recent bearish activities, pair remains above both 100 & 200-day SMAs, signalling an overall bullish trend.

In Wednesday's trading session, the AUD/JPY fell to 96.50 after a strong 0.95% decline. The daily chart outlook for the pair appears neutral to bearish, indicative of bears gaining ground. Reinforcing this sentiment, the four-hour chart also leaned towards the bearish side with indicators near the oversold zone.

The daily Relative Strength Index (RSI) shows a downward inclination yet remaining in the positive region, indicating slight selling pressure as well as the rising red bars of the Moving Average Convergence Divergence (MACD). Furthermore, the bears have made an apparent show of power, pushing the cross price below its 20-day Simple Moving Averages (SMA). However, the AUD/JPY remains firm on higher ground, as demonstrated by its position above both the 100 and 200-day SMAs. This solidifies the notion that despite recent bearish challenges, the overall buying force still commands the roost.

Switching to a shorter time frame, the four-hour outlook seems to be also favoring a bearish narrative for the moment. Technical indicators appear oversold, reflecting a growing bearish bias among traders. Simultaneously, the Relative Strength Index (RSI) is on the cusp of the oversold threshold, while the Moving Average Convergence Divergence (MACD) exhibits rising red bars, another pointer to the growing clout of bears in the short-term.

AUD/JPY daily chart

AUD/JPY levels to watch