AUD/JPY Price Analysis: Cross enters consolidation phase, fall likely momentary

• The indicators on the daily chart suggest that a correction phase is beginning; The RSI falls, which means a decrease in overbought conditions.
• The indicators on the hourly chart remain in negative territory, signaling a downward correction in the short term.
• The bulls are showing signs of exhaustion, unable to retest the highs of 105.00.

In the Wednesday session, the AUD/JPY pair showed signs of correction, retreating to the level of 104.30 after a previous rise to 104.90. Buyers are apparently finding it difficult to maintain bullish traction. The market seems to have entered a short-term correction phase.

On the daily chart, the RSI has dropped to the 67 territory, indicating a decline from previous overbought conditions. In sync with this, the MACD continues to create red bars, further solidifying the possibility of weakening purchasing power.

AUD/JPY daily chart

Reiterating these sentiments is the hourly chart. Both the RSI and MACD remain in negative territory, indicating a likely short-term correction.

AUD/JPY hourly chart

Prominent resistance remains the cycle high just above 105.00, while the 20-day SMA, now at 103.29, continues to provide strong support.