The AUDJPY currency pair has recently experienced a significant price breakout from a bearish channel in April, characterized by a swift and decisive movement. This breakout was swiftly followed by a rapid pullback, which retraced a portion of the prior move. As the pair reached the mid-range of the last prominent bearish displacement, a consolidation phase began, indicating a temporary balance between buying and selling pressures.
AUDJPY Key Levels
Demand Levels: 87.380 and 83.910
Supply Levels: 93.050 and 95.290
AUDJPY Long-term Trend: Bullish
On the daily chart, the major highs since November have formed a resistance trendline. This trendline has repelled price ascents on multiple occasions until March, when a bearish breakout occurred from a parallel channel. The breakout was marked by larger daily candles, causing a sudden rise in the Average True Range (ATR) due to increased daily volatility. This surge in ATR indicates heightened market activity and a potential shift in trend.
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Following the breakout, the price initiated a quick pullback, which paused at the 50% Fibonacci retracement level. The price is currently stiffening, accompanied by a drastic decline in ATR in recent days. This decline in ATR suggests a decrease in market volatility, which often precedes a significant price move.
AUDJPY Short-term Trend: Bearish
On lower timeframes, the consolidation at the 50% Fibonacci level has formed a descending triangle pattern. This pattern typically indicates a bearish bias, and a breakout below the triangle’s support level is expected to continue the downward motion. Traders will likely be watching this level closely to generate accurate forex signals.
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AUDJPY Short-term Trend: Bearish
AUDJPY Short-term Trend: Bearish
