The bearish bias has decreased, the indicators point to the consolidation phase

• AUD/JPY fell to 96.45 on Friday, resuming losses after three sessions of gains.
• However, technical indicators are suggesting a shift into neutral territory, with the RSI breaking out of the oversold zone and the MACD showing falling red bars.
• The cross will close a weekly gain of nearly 1% despite the losses.

In Friday’s session, AUD/JPY fell 0.65% to 96.45, extending its recent downward trajectory. Despite this move lower, technical indicators are showing signs of a potential shift in market sentiment.

The Relative Strength Index (RSI) has broken out of oversold territory below 30 and is currently around 33. This suggests that AUD/JPY is no longer considered oversold and is heading towards neutral territory. The Moving Average Convergence Divergence (MACD) is also showing falling red bars, indicating that bearish momentum may be on the decline.

AUD/JPY Daily Chart

Based on these technical observations, the AUD/JPY pair is likely to enter a consolidation phase. The pair may continue to trade in a range with limited downside potential due to increased support at 96.00 and 95.00. On the upside, resistance at 97.00, 98.00 and 100.00 could cap any significant upside.