AUDJPY Price Continues to Dip

Market Analysis – August 1

The AUDJPY market maintained a bullish trend throughout the first half of the year, consistently forming new swing highs until reaching a peak of 109.0. Despite experiencing significant pullbacks, the upward momentum remained intact until recently. However, the tides have turned, and the market is now experiencing a notable downward shift.

AUDJPY Key Levels

• Demand Levels: 97.80, 95.50, 93.70
• Supply Levels: 100.00, 104.50, 108.00

AUDJPY Long-Term Trend: Bearish

Since January, the Awesome Oscillator has rarely dipped below 0, with red bars appearing during pullbacks, indicating intermittent selling pressure. Upon reaching the supply level at 108.00, the price fell below the Lorentizan Classification Indicator, signalling a shorting opportunity. This marked the beginning of a significant bearish trend.

The pronounced price decline that began in mid-July has aggressively broken through multiple demand zones, eroding previous support levels. The Awesome Oscillator continues to show increased selling momentum, confirming the bearish outlook in the long term. The downward pressure appears to be gaining strength, as evidenced by the consistent decline in price.

AUDJPY Short-Term Trend: Bearish

The AUDJPY pair is under significant pressure in the short term, with the next demand zone at 97.80 appearing vulnerable. The ongoing price decline will likely target this zone and potentially breach it, further accelerating the bearish momentum. The price is expected to test and possibly break the swing low at 95.50, a key level that traders are closely watching.

Both the Lorentizan Classification Indicator and the Awesome Oscillator support a continued price decline across both higher and lower time frames. Short-term traders should remain cautious, as the indicators suggest that selling pressure will likely persist. With the market dynamics favouring the bears, the outlook for AUDJPY remains firmly negative in the near term.

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