Recovers from multi-week lows, bears take a breather

• The AUD/JPY registers gains at 96.60 mark, with a positive 0.40% score on the board.
• Daily indicators flattened in negative territory.
• On the weekly chart chart, bearish momentum is building.

In Friday’s session, the AUD/JPY was seen rising to 96.60, recording gains of 0.40% but will still close a 0.70% weekly loss. While bears have dominated in the last sessions, pushing the pair down to its lowest level since mid-December, they seem to be taking a breather which allowed room for the upside. However, on the weekly outlook, the bearish sentiment is still evident, indicating more downside potential as the cross tallies a second consecutive weekly loss.

On the daily chart, despite the bears making some headway and the pair’s trading position situated below the 20-day Simple Moving Averages (SMAs), the bulls retain control in the wider frame.. With regards to the Moving Average Convergence Divergence (MACD), the flat red bars indicate a period of consolidation, which could be seen as bears taking a breather as well as the positive slope in negative territory of the Relative Strength Index (RSI).

On the weekly chart, the momentum appears to tilt towards the bears. With the RSI falling in the positive territory and the MACD displaying red bars, it suggests that the selling momentum may be building up. Since mid-January, the cross declined by nearly 1%, and tallies a two-week losing streak.

AUD/JPY daily chart