AUDJPY Bulls Propel Price Toward Key Resistance Zone

Market Analysis – January 9

The AUDJPY market is currently transitioning into a consolidation phase, characterized by limited price movement within a defined range. The supply zone at 101.3650 remains a formidable barrier, consistently resisting upward movement and limiting bullish momentum. On the downside, the demand zone at 93.8570, reinforced by a strong bullish order block, continues to provide significant support, preventing any substantial price drops. This balance between supply and demand indicates that the market may remain range-bound for the time being, awaiting a catalyst that could trigger a breakout in either direction.

AUDJPY Major Zones

Resistance Zones: 101.3650, 104.8700, 109.3700
Support Zones: 95.7470, 93.8570, 90.2870

AUDJPY Long-term Trend: Ranging

AUDJPY witnessed a sharp price decline from July to August, resulting in a 17.59% market loss. This rapid downward movement created price gaps and established a notable bearish order block at the 101.3650 resistance zone. This zone halted price rallies in September, contributing to consolidation between October and November.

Despite these challenges, buyers have remained active. The bullish order block at the 93.8570 demand zone has triggered significant buying pressure. This coincides with oversold signals detected by the Relative Strength Index (RSI) and Stochastic indicators in November. Consequently, the market has consistently rejected lower price levels, similar to the patterns seen in August and September.

AUDJPY Short-term Trend: Bullish

On the 4-hour chart, the bullish order block at 95.7470 has fueled an upward movement, forming a bullish wedge pattern. The price is now advancing toward the previous resistance level at 101.3650.

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