AUDJPY recently broke above a descending resistance trendline, signalling an initial bullish intent. However, the price has yet to surpass the previous swing high that marked the last significant bearish displacement, indicating indecision in market direction.
While AUDJPY is exhibiting a bullish market structure, it has not fully transitioned into a confirmed uptrend. The current upward movement remains confined within the inefficiency zone created by the last bearish displacement, suggesting this may still be a corrective pullback rather than a trend reversal.
The price attempted to challenge the origin of the previous bearish move at 95.4490 but was rejected, leading to a decline that retested the broken bearish trendline. Since then, the pair has resumed a slow ascent. The Average Directional Index (ADX) continues to reflect weak momentum, with values remaining low, highlighting the absence of strong directional bias. Over the past week, the daily candle highs have remained nearly identical, pointing to price stagnation and a lack of volatility.
AUDJPY Short-term Trend: Ranging
On the 4-hour timeframe, the consolidation is more pronounced. The pair is currently moving within a defined range and has yet to break out of the immediate channel. While a bullish breakout toward the resistance level at 95.4490 remains a possibility, the price must first overcome the boundaries of its current consolidation zone.
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AUDJPY Short-term Trend: Ranging
