AUDJPY Signals Deeper Correction Within Bearish Structure

Market Analysis – October 20

The AUDJPY daily chart currently exhibits a bearish outlook as momentum indicators align with weakening bullish sentiment. The MACD histogram has turned negative, reflecting a growing divergence between the signal and MACD lines, while the price remains positioned below the 9-day simple moving average at 98.70. This alignment underscores a loss of upward strength and reinforces a downside sentiment across the broader market context.

AUDJPY Key Levels

Supply Levels: 100.950, 102.390
Demand Levels: 93.590, 90.000

AUDJPY Long-Term Trend: Bearish

AUDJPY recently formed a clear Change of Character (CHoCH) near 98.00 after rejecting from the imbalance zone around 100.90. This rejection confirms that sellers are defending key supply levels, maintaining control below the psychological resistance area of 101.00. The price action also highlights a consistent failure to sustain above the imbalance region, suggesting exhaustion among buyers and validation of a potential distribution phase.

Looking forward, AUDJPY is anticipated to extend its bearish momentum toward the 96.90 support level, with further downside targets near 93.60 if selling pressure persists. A break below this zone could expose deeper liquidity pools around 90.00, validating the continuation of the broader bearish structure. Unless buyers reclaim the imbalance region decisively, the prevailing trend bias remains negative for the near term.

AUDJPY Short-Term Trend: Bullish

AUDJPY shows signs of short-term bullish momentum as price breaks above the descending structure and the 9-period SMA around 97.60. The RSI has turned upward from near the 40 zone, reflecting renewed buying interest. Price action suggests potential continuation toward the imbalance zone around 99.50, where sellers may re-enter. Sustained movement above 98.70 could reinforce bullish sentiment before facing resistance near 100.90.

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