The bearish bias has receded, and indicators are pointing to a consolidation phase.

• The AUD/JPY pair fell to 96.45 on Friday, resuming losses after three sessions of gains.
• However, technical indicators are pointing to a shift towards neutral territory, with the RSI moving out of oversold territory and the MACD showing decreasing red bars.
• The pair is expected to close with weekly gains of around 1% despite the losses.

On Friday, the AUD/JPY pair fell 0.65% to 96.45, continuing its recent downward trajectory. Despite this downward move, the technical analysis remains weak. Indicators Signs of a possible shift in market sentiment are emerging.

The Relative Strength Index (RSI) has moved out of the oversold zone below 30 and is currently hovering around 33. This suggests that the AUD/JPY pair is no longer considered oversold and is moving towards neutral territory. The Moving Average Convergence Divergence (MACD) indicator is also showing decreasing red bars, suggesting that the bearish momentum may be waning.

AUD/JPY Daily Chart

Based on these technical observations, the AUD/JPY pair could enter a consolidation phase. The pair may continue to trade within a range, with downside potential limited by the growing support at 96.00 and 95.00. On the positive side, resistance at 97.00, 98.00 and 100.00 could limit any significant upward movement.