AUDJPY Pulls Back to Bearish Order Block

Market Analysis – September 18

The AUDJPY pair remains entrenched in a strong downward trend, with bearish momentum dominating recent price action. Sellers reinforced their position at the 99.200 supply zone, sending the price lower. Furthermore, the price is currently retracing to a key bearish order block of 96.110, signaling a potential resumption of the downward trend.

AUDJPY  Key Levels to Watch

• Demand Levels: 93.420, 91.420, 90.000
• Supply Levels: 96.110, 99.210, 102.620

AUDJPY Long-term Trend: Bearish

Since mid-July, AUDJPY has dropped approximately 17% following a short signal from the Machine Learning Lorentizan Classification indicator. This steep decline reflects the overwhelming bearish control in the market.

The Elder Ray Bull and Bear Power indicator further confirmed this, revealing the strongest bearish dominance seen this year. After testing the 91.420 demand level, the pair retraced to the 99.210 supply zone, where another sell signal from the Lorentizan Classification indicator emerged.

AUDJPY Short-term Trend: Bearish

On lower timeframes, a brief bullish retracement is underway, driven by the pullback to the 96.110 bearish order block. While this move may indicate short-term buying pressure, it is expected to reinforce the broader bearish trend as sellers prepare to re-enter the market. This retracement to the bearish order block is likely a temporary move before the broader downtrend resumes, reinforcing bearish market sentiment.