The AUD/JPY currency pair edged higher after four consecutive days of losses, trading around 110.20 during European hours on Friday [1]. Technical analysis indicates a bearish bias, as the pair continues to move downward within a descending channel pattern on the daily chart [1]. The near-term outlook remains mildly bearish, following a pullback from the 113.00 area and a slip below the nine-day Exponential Moving Average (EMA), although the pair is still holding above the rising 50-day EMA, which maintains the broader uptrend [1].
Momentum has cooled, with the 14-day Relative Strength Index (RSI) easing toward the mid-40s after exiting overbought territory, suggesting fading upside pressure and potential for further consolidation or retracement toward underlying supports [1]. Immediate support is identified at the lower boundary of the descending channel around 109.80, followed by the 50-day EMA at 109.67. A further decline could weaken medium-term momentum and expose the psychological support at the seven-week low of 107.73 [1].
On the upside, the AUD/JPY cross may target the nine-day EMA at 111.00, followed by the upper boundary of the descending channel at 112.10. A break above this channel could trigger a bullish revival, potentially supporting a move toward the all-time high of 113.96, which was reached on March 11 [1].
In terms of broader currency performance, the Australian Dollar was the strongest against the Swiss Franc today, with a percentage change of 0.16% against the CHF. Against the Japanese Yen, the AUD gained 0.10% [1].
CONCLUSION
AUD/JPY has rebounded from the 110.00 level but remains within a bearish channel, with technical indicators suggesting further consolidation or retracement is possible. Key support and resistance levels are being closely watched, and a break above the channel could signal renewed bullish momentum. The market impact is medium, as traders monitor technical signals and broader currency strength for future direction.