AUDJPY Begins a Major Decline

Market Analysis – November 16

AUDJPY begins a major decline as the price enters an overbought zone, according to the RSI (Relative Strength Index). The recent reaction of AUDJPY to the overbought zone in the 95.550 supply zone indicates an impending crash to the downside.

However, the impending downtrend might last only for a short time, as the overall trend remains.

AUDJPY Key Levels

Demand Zones: 91.790, 86.250
Supply Zones: 98.550, 107.840

AUDJPY Long-Term Trend: Bullish

The overall trend of the market has been bullish since the price’s rejection at the 86.250 demand zone in March 2023. The market initially experienced a pullback to the upside as the bulls began to storm the market.

A bullish order block formed below the 50% retracement level of the new trading range during the pullback. The bullish order block initiated the continuation of the emerging bullish trend. Algorithmically, AUDJPY continued upward until the 91.790 previous resistance was met.
 
Following a short resistance to the emerging bullish trend at the 91.790 price level, AUDJPY aggressively surged to the upside. The aggressive surge brought the price to the 97.660 swing high before a major correction into the discount zone.

From the bullish order block at the 91.790 demand zone, the market resumed its bullish trend. The bullish trend continued until the recent invalidation of the 97.660 swing high. Owing to the indication of the impending downtrend by the RSI, AUDJPY is likely to experience a short-term retracement beyond the $96.030 low.

AUDJPY Short-Term Trend: Bearish

The market’s trading range on the four-hour chart lies between the 93.010 low and the 98.550 high. According to the RSI, AUDJPY seems to be declining downward after hitting the 98.550 resistance. The emerging decline is expected to continue until the discount zone of the trading range is reached.

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