AUDJPY Establishes New Bullish Break of Structure

AUDJPY has staged a bullish reversal at the key support level of 87.240. Buyer activity has intensified, and a significant bullish break of structure has now been confirmed, suggesting a shift in market sentiment.

Demand Levels: 87.240, 84.260, 80.000

Supply Levels: 99.200, 108.960, 110.000

In April, AUDJPY reached an oversold condition at the demand level of 87.240. During the descent to this level, a fair value gap emerged, highlighting inefficiencies in price movement. This set the stage for a corrective move aimed at restoring market balance.

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The ensuing pullback unfolded with a strong bullish structure, efficiently filling the fair value gap. Smoothened Heikin Ashi Candles confirmed a shift in momentum. Bulls successfully pushed the price above the 95.000 swing high, previously the starting point of the most recent bearish displacement on the daily timeframe, indicating a potential reversal of the broader trend to the upside.

Currently, the price is fluctuating around a confluence zone formed by intersecting resistance and support trendlines. This area also marks the last swing low in the recent bullish pullback. A breakout from this region, if supported by continued bullish pressure, could validate the start of a sustained upward move. The technical alignment favors buyers, provided they capitalize on this critical inflection point.