AUDJPY reached its highest price of the year at 109.370 before experiencing a sharp market crash. The price plummeted, testing the support zone at 93.410. Following this decline, a bullish retracement emerged from the demand zone, pushing the price to 99.210, where it encountered strong resistance. Since then, the bearish trend has resumed, with price action now pointing downward once again.
The market’s price action shows a clear distinction between the aggressive crash in July and the more tempered bullish retracement in August. The Average True Range (ATR) indicates larger daily ranges during the downtrend compared to the retracement toward 99.210, suggesting heightened volatility favoring the bearish movement.
The Awesome Oscillator reflects stronger selling momentum, as seen in the extended red bars during the crash. This selling intensity faded during the bullish retracement, with shorter bars indicating weaker upward momentum. The downward price movement has also left behind inefficiently traded regions, while the retracement phase lacks any significant fair value gaps, signaling weak buyer activity.
AUDJPY Short-Term Trend: Bearish
On the 4-hour chart, the bearish sentiment is reinforced by increasing selling pressure at multiple bearish order blocks. The price is now quickly approaching the key demand level at 93.420, with bearish momentum continuing to drive the market lower.
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AUDJPY Short-Term Trend: Bearish
