AUDJPY Consolidation Persists as Buyers Eye 100.00 Market Area

Market Analysis – January 24

AUDJPY remains range-bound, trading between the key levels of 100.00 and 95.60 as buyers struggle to gain enough momentum for a breakout. After a pullback in late 2024, the currency pair has been stuck in consolidation. There has been no significant movement to signal a decisive trend.

AUDJPY Key Levels

Resistance Levels: 100.00, 102.50, 98.00
Support Levels: 95.60, 94.50, 93.00

AUDJPY Long-Term Trend: Bullish

AUDJPY has been locked in a mid-range flow, unable to recover from the bearish move late last year that pushed the price down to 95.60. The bulls have attempted to regain control, but their efforts have been capped at 100.00, resulting in prolonged consolidation. The Momentum indicator remains muted, signalling a lack of direction as the market awaits a catalyst to initiate a breakout.

The Stochastic Oscillator reflects a gradual buildup of buying pressure, but it remains insufficient for a sustained upward move. If buyers can gather enough strength, AUDJPY could test the 100.00 resistance level, with a potential breakout paving the way for a rally toward 102.50. However, without a strong catalyst, the currency pair may remain range-bound, oscillating between the current support and resistance levels.

AUDJPY Short-Term Trend: Bullish

On the shorter time frame, buyers are gradually gaining strength, as indicated by the Stochastic Oscillator. This currently shows increasing bullish activity. However, the Momentum indicator suggests that the market still lacks the energy needed for a significant breakout.

If the bulls manage to sustain their rise, the price could test 98.50 in the medium term, with further gains likely if momentum builds. This setup could be used to generate the best forex signals. Conversely, a lack of follow-through could see the currency pair fall back to the lower end of the range near the 96.00 key level.

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