AUD/JPY Price Analysis: Bulls regain ground but downside risks persist

• AUD/JPY was seen trading around the 93.00 area ahead of the Asian session, recovering from a three-day losing streak.
• Despite the rebound, the pair remains below key resistance, while indicators continue to reflect underlying bearish pressure.

The AUD/JPY pair bounced back on Tuesday ahead of the Asian session, moving near the 93.00 zone after declining for three consecutive sessions. While the daily advance suggests some buying pressure, the broader technical picture remains uncertain as the pair struggles to hold above key resistance levels.

Technical indicators paint a mixed picture. The Relative Strength Index (RSI) has sharply risen but remains in negative territory, indicating that the recovery lacks strong bullish momentum. Meanwhile, the Moving Average Convergence Divergence (MACD) is printing decreasing red bars, signaling that bearish momentum is easing but not entirely absent. This suggests that while selling pressure has subsided, buyers may still need to overcome key resistance before confirming a sustained recovery.

Looking at support and resistance levels, the first resistance lies around the 93.50 region, followed by stronger resistance at 94.00. A break above these levels could provide the bulls with further momentum. On the downside, immediate support is seen at 92.50, with a deeper floor around 92.00. The 20-day Simple Moving Average (SMA) at 95.00 remains a critical level for a broader trend shift.

AUD/JPY daily chart