AUDJPY Previous Resistance Zone Turns Support

 Market Analysis – July 31

AUDJPY has recently displayed a noteworthy development, forming a double-bottom bullish reversal pattern as it tested the previous resistance zone at 93.0. This resistance level lies within the discount region of the last bullish swing on the daily chart.

Key Levels For AUDJPY

Demand Levels: 94.000, 93.500, 93.000
Supply Levels: 96.000, 97.000, 98.000

AUDJPY Long-Term Trend: Bullish

Despite the double-bottom bullish pattern, it’s essential to note that the previous bearish order block at 96.0 remains intact, keeping the market structure bearish. Both the MACD (Moving Averages Convergence and Divergence) indicator and the Parabolic SAR (Stop and Reverse) continue to indicate bearishness on the daily chart.

The occurrence of the double bottom pattern in the demand zone signifies the active involvement of buyers who have stepped in to prevent a further decline in the price.

AUDJPY Short-Term Trend: Bullish

When observing the lower timeframe, we find a contrasting trend. The MACD on the 4-hour chart shows a bullish signal due to the presence of multiple large bullish candles. The current resistance zone at 95.0 is now under threat as the price rises rapidly on the lower timeframe. To confirm a full-fledged bullish trend, a decisive sweep above the high of 97.0 would be necessary

In conclusion, AUDJPY has seen a shift in price action, with a double bottom pattern forming at the previous resistance zone, indicating buyer interest. Nevertheless, the overall market structure remains bearish, as reflected in the higher timeframe indicators. It is crucial for traders to closely monitor the potential breakout above 97.0 to ascertain the initiation of a bullish trend.