AUDJPY Price Action Keeps Respecting Bullish Trendline

AUDJPY Analysis – January 10

AUDJPY price action keeps respecting Bullish Trendline. In June 2023, AUDJPY began a reversal to the upside, leading to a massive surge and invalidation of previous support at 91.800. Following a BOS (Break of Structure) at 97.700, the price hit 98.570 resistance, leading to a major retracement and a bullish order block. A short-term retracement into the bullish order block is likely, but another bounce off the major trendline could resume the overall bullish trend.

AUDJPY Key Levels

Demand Zones: 91.80, 86.10
Supply Zones: 96.90, 98.60

AUDJPY Long-Term Trend: Bullish

AUDJPY started an upward reversal at the beginning of June 2023. The reversal resulted in a tremendous rise. This caused the prior support at 91.800 to become invalid. A Fair Value Gap (FVG) was also left by AUDJPY at the 91.800 price point. At 97.700, a swing high was formed as a result of the initial upward reversal. The market ultimately continued its ascent from the FVG created around 92.130, invalidating the swing high of 97.700. AUDJPY made fractal advances to the upside under strong selling pressure into the premium zone after rebounding from the 91.800 price level.

The price approached the 98.570 resistance level after the BOS (Break Of Structure) at the 97.700 high. This resulted in a significant pullback, which came to an end when the price crossed the significant trendline. Following the price’s return to the FVG in late July 2023, the primary trendline has started. As the price resumed its upward trajectory from the key trendline, a bullish order block emerged. Due to the selling pressure in the premium zone, a brief retreat into the bullish order block is perhaps in store for AUDJPY. Nonetheless, a continuation of the general bullish trend is probably going to occur with another rebound off the key trendline.

AUDJPY Short-Term Trend: Bearish

On the four-hour chart, the market seems to be in a downtrend as it moves along a diagonal resistance. The downtrend is likely to continue until the sell-side liquidity below the weak low at 95.480 is swept. Price’s reaction to the major trendline is expected to lead to the market’s bullish trend resumption.

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