AUD/JPY Price Forecast: Rebounds from 110.00 near lower descending channel boundary

• AUD/JPY may test the lower descending channel boundary around 109.80.
• The 14-day Relative Strength Index eases toward the mid-40s, indicating fading upside momentum.
• The pair may rise toward the nine-day EMA at 111.00.

AUD/JPY edges higher after four days of losses, trading around 110.20 during the European hours on Friday. The technical analysis of the daily chart suggests a bearish bias as the currency cross moves downwards within the descending channel pattern.

The near-term bias is mildly bearish after the AUD/JPY cross pulled back from the 113.00 area and slipped below its nine-day Exponential Moving Average (EMA), while still holding above the rising 50-day EMA, which keeps the broader uptrend intact.

Momentum has cooled, with the 14-day Relative Strength Index (RSI) easing toward the mid-40s after exiting overbought territory, indicating fading upside pressure and room for further consolidation or retracement toward underlying supports.

The immediate support lies at the lower descending channel boundary around 109.80, followed by the 50-day EMA at 109.67. Further declines would weaken the medium-term momentum and expose the psychological support at the seven-week low of 107.73.

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 around 112.10. A break above the channel may cause the bullish revival and support the currency cross to approach the all-time high of 113.96, which was reached on March 11.

(The technical analysis of this story was written with the help of an AI tool.)