AUDJPY is currently experiencing a bullish retracement within a broader bearish trend. After several days of upward momentum, the pullback is now approaching a significant supply zone of around 99.20 on the daily chart. This level represents a potential area of resistance where sellers may step in to halt further upside.
The overall trend for AUDJPY remains bearish. A bullish trendline, previously intact from December to April, acted as a support for multiple price rebounds. However, the subsequent break and retest of this trendline confirmed a bearish reversal.
In July, the Stochastic indicator signalled overbought conditions, while the MACD lines crossed above zero, hinting at an imminent downturn. The price crash that followed validated these forex signals.
AUDJPY Short-Term Trend: Bullish
In the short term, the pair has retraced to the supply zone of 99.20, a level last tested in July before the bearish displacement. After touching the demand zone at 90.30, where the Stochastic indicated oversold conditions, AUDJPY initiated this bullish pullback. Traders monitoring this level may view it as an opportunity to short, anticipating resistance at 99.20 with a potential downside toward the demand zone at 90.30.
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AUDJPY Short-Term Trend: Bullish
