AUDJPY Shows Weakness As Buyers Aim For Expansion

Market Analysis – February 20

AUDJPY weakness as buyers show expansion. AUDJPY is currently exhibiting signs of weakness as buyers continue to aim for expansion. Recent price action has shown that buyers are making notable strides. This has been seen particularly in their recovery from the significant level of 95.560.

AUDJPY Key Levels

Support Levels: 95.560, 95.000
Resistance Levels: 98.260, 97.000

AUDJPY Long-Term Trend: Bearish

The recent bullish recovery began after a pullback from the 98.260 significant level, which saw the market slip to 95.550. The struggle between buyers and sellers has been evident, with sellers attempting to regain control. However, the recent pressure from buyers indicates their strong intention to push the market higher. Despite the prevailing weakness in the overall market sentiment, the buyers have demonstrated remarkable resilience.

The Momentum indicator reflects a steady state, signalling that while the upward momentum may not be explosive, it is still present. The Stochastic Oscillator continues to provide a bullish signal, indicating that buyers are in a position of strength and that upward movement is likely. This bullish control is particularly evident on the short time frame, where buyers are strategising for a stronger move.

AUDJPY Short-Term Trend: Bearish

On the 4-hour chart, the bullish sentiment remains intact as buyers maintain control. The Stochastic Oscillator indicates that the buyers are not only holding their ground but are also poised for further advances. The market sentiment is gradually shifting in favour of the bulls as they apply pressure for a reversal.

If the buyers can sustain their momentum, the outlook for AUDJPY remains cautiously optimistic. A potential target can be set around the 97.000 and 98.260 resistance levels. The ongoing efforts by buyers to assert control will be crucial in determining the future direction of AUD/JPY.

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