AUD/JPY Price Forecast: Tests 93.00 level, next support at lower descending channel limit

• AUD/JPY tests the psychological support level at 93.00.
• The 14-day RSI remains above the 30 mark, reinforcing the prevailing bearish bias.
• The pair tests the primary barrier at the nine-day EMA of 93.78

AUD/JPY extends its losses for the second consecutive day, trading around 93.00 during Asian hours on Friday. A technical analysis of the daily chart shows that the currency cross remains within a descending channel, confirming a sustained bearish bias.

The 14-day Relative Strength Index (RSI) remains above the 30 level, reinforcing the ongoing bearish sentiment. A drop below 30 would signal an oversold condition, potentially triggering an upward correction. Additionally, the AUD/JPY cross continues to trade below the nine-day Exponential Moving Average (EMA), indicating weak short-term price momentum.

The AUD/JPY cross is testing the psychological support level at 93.00, followed by the lower boundary of the descending channel at 91.90. A decisive break below this channel could reinforce the bearish outlook, potentially driving the currency cross toward the 90.13 region--the lowest level since May 2023, last seen on August 5, 2024.

On the upside, the AUD/JPY cross faces initial resistance at the nine-day EMA of 93.78. A breakout above this level could improve short-term price momentum, potentially driving the currency cross toward the upper boundary of the descending channel at the psychological level of 95.50, followed by the 50-day EMA at 95.91.

AUD/JPY: Daily Chart