AUDJPY Nears Major Supply Zone

AUDJPY continues strengthening as it pushes through its second bullish surge of the year. After a brief slowdown earlier in the second half, the market regained upward momentum and is now moving steadily toward the major resistance at 102.390.

Demand Levels: 98.590, 97.320

Supply Levels: 102.390, 108.160

During the initial bullish wave, the Elder Ray Bull and Bear indicator held above zero for an extended period, strongly emphasizing buyer control. This behaviour complemented the Smoothened Heikin Ashi candles, which consistently reflected bullish market sentiment. The ascending lows further anchored a reliable bullish trendline that guided price action.

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Nevertheless, July introduced a sideways correction that disrupted the prevailing structure. The consolidation carried into late August, and the Heikin Ashi candles briefly shifted bearish during the structural break. Eventually, buyers reclaimed momentum, initiating the current bullish phase that now challenges the 102.390 resistance. Notably, this level was previously rejected last November and triggered a prolonged bearish wave lasting until this year.

The 4-hour timeframe displays a solid bullish structure, although occasional stop-hunts emerge, as is typical in currency markets. With momentum building, bulls appear determined to retest the 102.390 level. As such, this resistance zone stands out as a strategic target for the best forex signals, especially for traders anticipating continuation strength.

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