The AUD/JPY pair extended its losses on Wednesday, marking a two-day losing streak as sellers maintained their grip on the market. The cross slipped closer to the 94.00 zone, a level not seen since mid-September, as bearish momentum continued to build.
From a technical standpoint, indicators point to further downside risks. The Relative Strength Index (RSI) is trending lower and is now nearing oversold territory, reflecting sustained selling pressure. Meanwhile, the Moving Average Convergence Divergence (MACD) histogram shows rising red bars, confirming the growing bearish bias.
With the pair trading near key support, a break below the 94.00 region could open the door for deeper losses. On the flip side, buyers would need to reclaim the 20-day SMA, currently sitting well above recent price action, to regain some control and shift the near-term outlook.
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