AUDJPY Experiences Its First Bearish Trend of 2024

Market Analysis – July 25

AUDJPY began the year trading within a range that persisted throughout January. However, February brought a significant shift as the price surged, forming higher highs and lows. This set the stage for a prolonged bullish trend. Currently, the price has broken through a major demand zone at 102.60, marking the onset of its first bearish trend for the year.

Key Levels for AUDJPY

• Demand Levels: 99.40, 95.50, 92.00
• Supply Levels: 102.60, 105.20, 108.30

AUDJPY Long-Term Trend: Bearish

The Australian dollar has dominated the Japanese yen throughout the year, with only minor retracements for support and a few stop runs. The market structure remained bullish from February, supported by the 9 and 21-period Moving Averages. The recent shift in market direction was first indicated by the price falling below these Moving Averages, followed by the break of the 102.60 demand zone.

The Elder Ray Bull and Bear Power indicator reflects how bears have recently seized control from buyers since January. The appearance of three black crows on the daily chart underscores the strength and momentum with which the bears have taken over.

AUDJPY Short-Term Trend: Bearish

The lower timeframes also exhibit a strongly bearish market structure. Seeking long positions in this market would be akin to catching a falling knife. Accurate forex signals during this period are likely to generate short signals. The Bull and Bear Power indicator confirms the sellers’ dominance on the lower timeframe. The price is approaching the demand level at 99.40 and is likely to breach this zone due to the overwhelming bearish pressure. The previous demand zone now turned resistance, was broken effortlessly, underscoring the bearish momentum.

Overall, AUDJPY is currently in a bearish phase, and traders should approach this market cautiously, favouring short positions until signs of reversal emerge.

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