AUDJPY Begins Retracement After Significant Price Decline

The AUDJPY market has experienced a sharp and pronounced decline, with the price plummeting from the 109.40 level. Over the past three weeks, this dramatic drop has amounted to a decrease of over 17.0%, reflecting significant bearish pressure and heightened market volatility. This sharp downturn marks a notable shift from the earlier uptrend and indicates a period of substantial market adjustment.

AUDJPY Key Levels:

• Demand Levels: 93.70, 90.20, 88.80
• Supply Levels: 99.20, 104.50, 108.00

AUDJPY Long-Term Trend: Bullish

The year began with a consolidation phase in January. Gradually, the price action shifted into an upward trend, with pullbacks aligning with the Moving Averages (Periods 9 and 21), which provided consistent support. These tests of the Moving Averages halted retracements and facilitated further ascent.

A bearish reversal emerged when daily candles fell below the Moving Averages. The price also temporarily paused at the bullish order block of 104.70, before a series of bearish candles pierced through the demand zone, extending the decline.

AUDJPY Short-Term Trend: Bearish

The recent price crash has been marked by significant volatility, the highest observed this year. The Average True Range on both the daily and four-hour charts confirms this heightened volatility. Following a test of the demand zone at 90.30, the price is currently retracing towards the previously broken demand level of 97.80.

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