AUDJPY Continues Its Major Decline

AUDJPY Analysis – November 22

AUDJPY continues its major decline into the discount zone. Owing to the overwhelming selling pressure at the major resistance at 98.600, the market has made a reversal to the downside. The ongoing downtrend is likely to last for a while since the price recently entered an overbought state.

AUDJPY Key Levels

Demand Zones: 91.790, 86.060
Supply Zones: 98.600, 102.840

AUDJPY Long-Term Trend: Bullish

As the first quarter of the year 2023 rounded up, the market experienced a swift reversal to the upside. The reversal was a result of the presence of the bulls at 86.060 in the discount zone.

According to the Stochastic Oscillator, AUDJPY was clearly in an oversold state. The reversal continued algorithmically until the price experienced difficulty breaking the previous resistance at 91.790. AUDJPY eventually broke through the 91.790 previous major resistance. This followed a consolidation at the 91.790 price level, which lasted for almost one month.

The rally extended to 97.670 before making a major retracement back to the 91.790 price level. The ensuing expansion following the major retracement was characterized by slow bullish momentum. This occurred as a result of the bulls and bears struggling to take control of the market. Recently, a massive expansion into the 98.600 supply zone occurred. However, AUDJPY keeps sinking into the discount zone as the selling pressure from the 98.600 supply zone overwhelms the market.

AUDJPY Short-Term Trend: Bearish

On the four-hour chart, the market’s order flow is bearish. AUDJPY appears to be heading into the discount zone as the price algorithmically declined from the 98.600 major resistance. The ongoing downward move is expected to continue until the 98.030 swing low is invalidated.
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