AUDJPY Buyers Reclaim Bullish Momentum

AUDJPY Price Analysis – August 28

AUDJPY is consolidating within a broader uptrend after encountering a significant barrier at the 96.862 resistance. Buyers have since successfully defended key support, reasserting near-term control and positioning the pair for another attempt to challenge this pivotal overhead ceiling. Market structure suggests strength is being gathered for a potential breakout.

AUDJPY Key Levels:

Resistance Levels: 96.862, 98.260
Support Levels: 95.336, 93.260

AUDJPY  Long-Term Trend: Bullish (Daily Chart)

AUDJPY maintains its underlying bullish trajectory established since the April lows. The price ascent was halted decisively upon testing the 96.862 resistance in July. This has prompted a prolonged consolidation phase, with current price action around 95.840 reflecting an equilibrium between buyers and sellers. The flattening and convergence of the 9- and 21-period moving averages corroborate this period of directional indecision following the rejection.

The Momentum indicator reading of -0.629, while below the zero line, is consistent with a healthy pause within the larger uptrend. It reflects the market’s digestion of previous gains following the key rejection, indicating consolidation rather than a reversal of the dominant bullish structure.

AUDJPY Short-Term Trend: Bullish (4-Hour Chart)

Near-term momentum has shifted in favor of buyers, as confirmed by a recent bullish crossover in the Moving Average Convergence (9, 21). This is reinforced by the Momentum indicator, which has turned positive with a reading of 0.359. This indicates an accelerating upward price movement. This technical alignment suggests strengthening bullish momentum, with a clear objective to retest the critical 96.862 resistance level that previously capped gains.

The successful defence of support and subsequent shift in short-term momentum increases the probability of a renewed test of the 96.862 level. A definitive break above this resistance would signal the resumption of the broader uptrend.