AUDJPY Exhibits Prolonged Period of Consolidation

Market Assessment – August 29

The AUDJPY currency pair has remained entrenched within a consolidation phase, characterized by a persistent inability to breach the crucial support threshold of 92.990, a level that underwent testing back in July. Over the intervening period, a majority of daily candle closures have consistently occurred beneath the Moving Averages spanning both the nine and twenty-one-day periods, a trend that took root subsequent to the formation of the swing high at 97.570.

Prominent Key Levels

Points of Demand: 93.000, 90.260, 87.870
Points of Supply: 92.730, 97.570, 100.000

AUDJPY Long-term Trajectory: Bearish

The recent downward trajectory of the AUDJPY market ensued following the emergence of a double-top chart pattern. This pattern was swiftly succeeded by a decline of the daily candlesticks beneath the Moving Averages. This made the new downtrend obvious.

Revelling a lateral movement, the MACD indicator has exhibited a side-to-side motion since the onset of August, underscoring the present rigidity within the market. Notably, the market finds itself confined within the range delineated by the resistance level of 95.730 and the support level of 93.000, with attempts to breach these boundaries yielding limited success.

AUDJPY Short-term Trajectory: Range-bound

Zooming in on the shorter timeframes, it becomes evident that the aforementioned support level has effectively thwarted any downward movement. This has prevented the price from descending to the lower trendline. The emergence of a bullish shift in market structure has propelled the price towards the upper trendline, shaping the current short-term dynamics.

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