AUDJPY is currently navigating a correction phase after an impulsive price crash earlier in August. The price has fluctuated within a narrow range for several days since the pullback began. Now, it stands on the brink of entering the supply zone on the daily chart, indicating potential resistance ahead.
The volatile price crash in early August saw a significant spike in volume, as indicated by the Volume indicator, signaling heavy shorting by large market participants. However, the transaction volume has since normalized as the market enters a correction phase, marked by a lethargic pullback.
The retracement began with a long wick testing the demand level of 90.260, signaling the start of the correction. Over the past few days, the price has stalled, fluctuating near the edge of the supply zone at 99.210. This suggests that the upward momentum may be losing steam as it approaches this critical level.
AUDJPY Short-Term Trend: Bearish
In the short term, AUDJPY recently experienced a bearish breakout from a parallel bearish channel on the four-hour chart. The price is now expected to enter the supply zone at 99.210, where increased selling activity is likely to emerge. This could reinforce the bearish trend, potentially driving prices lower in the near future.
Trade on MT4 with Leverage up to 1:500! Trade on MT4 with Leverage up to 1:500!
X
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it.
AUDJPY Short-Term Trend: Bearish
