AUDJPY Bulls Sustain Bullish Reversal

Market Analysis – June 8

AUDJPY demonstrated a sustained bullish reversal, following a decline under the resistance of a bearish trendline. After plummeting to the support level of 86.0480 in April, the price quickly reversed direction and rose above the trendline, showcasing a notable shift in market sentiment. A recent pullback found support at 92.4410, preserving the uptrend and indicating buyers remain in control. AUDJPY Key Levels

AUDJPY Key Levels

Demand Levels: 92.4410, 90.6790, 86.0480
Supply Levels: 95.3200, 98.7380, 102.3020

AUDJPY Long-term Trend: Bullish

The rapid decline to 86.0480 created a wide region of inefficiency, characterized by a swift price movement without sufficient trading activity. This inefficiency was later filled by a price correction, which pushed the price back up towards the resistance trendline.

The Stochastic indicator signaled an oversold market at the support level, contributing to the reversal and highlighting the potential for a buying opportunity. The price broke above the resistance trendline, and the Moving Averages (30 and 50 periods) also indicated a direction change, confirming the bullish momentum. However, the price encountered resistance at 95.3200, causing a temporary decline. Fortunately, the price found support at 92.4410, and the Anchored Volume Profile shows high trading activity at this zone, supporting the presence of buyers.

AUDJPY Short-term Trend: Ranging

The price is currently ranging at the 92.4410 support level, with buyers attempting to recover from the recent decline. A break above 95.3200 could trigger a bullish surge, potentially targeting higher supply levels. Conversely, failure to sustain above 92.4410 may lead to a bearish reversal, and traders should monitor this key level closely.