The AUDJPY currency pair has experienced a dramatic and rapid decline, following a brief pause at the support level of 93.050. This impulsive move has set the stage for further bearish activity, with the market showing no signs of slowing down.
The AUDJPY pair began consolidating at 101.40 from October to mid-December, before the bears regained control, driving the price down to 98.30 between December and January. This marked the beginning of a bearish market structure, characterized by a series of lower highs.
AUDJPY Long-term Trend: Bearish
The bearish trend in AUDJPY has taken on a gentle slope, with a new range forming in December and persisting until February. This slowed down the price decline, resulting in an Average Directional Index (ADX) reading below 40 since October.
The bearish momentum was too weak to break through the support level of 93.00, leading to the formation of a double top pattern at 95.30. A subsequent pullback and breakout failure triggered a sharp decline, with large candles indicating high volatility piercing the support zone. This, in turn, caused a rise in the Average True Range (ATR) reading.
AUDJPY Short-term Trend: Bearish
The break of the support level at 93.00 has set the stage for bearish forex signals. The market is currently in a correction phase, following the recent impulsive move. Traders may be looking to capitalize on this bearish trend, with the next demand level at 87.40 potentially coming into focus.
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