AUDJPY Bears Dominate After Major Resistance 

AUDJPY is decidedly bearish as sellers remain firmly in command following a significant failure at a key multi-month resistance level. This rejection has catalyzed a strong downtrend that, while still intact, is now showing signs of temporary exhaustion. It has led to a consolidation phase at the recent lows as the market digests its rapid descent

Support Levels: 93.20, 91.80

Resistance Levels: 95.50, 96.80

AUDJPY formed a bearish “double top” pattern after failing to break above the formidable 96.86 resistance zone in late July and again in mid-August. This powerful reversal pattern triggered an aggressive sell-off, confirmed by a series of large, consecutive bearish candles that erased several weeks of gains.

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Currently trading at 94.73, the price has paused its decline. The most recent daily candle is a small-bodied “spinning top,” which indicates indecision. After a sustained sell-off, this type of candle suggests that sellers may be taking profits or pausing their attack, potentially allowing for a brief period of sideways action or a minor bounce. The Momentum indicator, with a strong negative reading of -1.256, confirms the formidable power behind the current downtrend.

The short-term indicators are signaling a potential for a minor counter-trend bounce. While the price has been flat, the Stochastic Oscillator has executed a bullish crossover from the oversold region and is pointing upwards. The Momentum indicator, though still negative at -0.357, has also begun to hook upwards from its lows. This bullish divergence between price and the oscillators suggests that the immediate downward pressure is fading.