AUDJPY Experiences a Bearish Breakout

Market Analysis – March 13

AUDJPY has experienced a bearish breakout from a parallel channel. The market is currently approaching the 87.890 support level.

AUDJPY Key Levels

Supply Levels: 95.140, 98.230, 100.000
Demand Levels: 87.890, 85.920, 83.90

AUDJPY Long-term Trend: Bearish

AUDJPY Bulls got exhausted after pushing through to reach 98.230. The sensitive major level caused the market to purge. The price declined aggressively to the 91.180 level. The market was stuck between 95.140 and 91.180 in October and November. The test of the bearish trendline caused a decline in price to 87.890.

The market direction changed after a ‘W’ shape formed at the 87.890 support level, after a launch from the support level. The market gathered more bullish momentum with a reversal to a bullish order block. The Stochastic was oversold at the order-block retest. A bullish parallel channel guided the price to rise beyond 91.180.

AUDJPY Short-term Trend

The supporting trendline of the bullish parallel channel has broken with the recent bearish displacement. The Stochastic reveals that the market is recovering from the oversold region. The supporting trendline and the 91.180 level have formed a confluence to provide shorting opportunities to cause a price decline.

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