AUDJPY Signals Strong Bearish Momentum

Market Analysis – December 16

The AUDJPY pair currently trades below the 9-day SMA at $97.030, indicating a bearish sentiment. The stochastic RSI shows a modest recovery but remains weak, with values at 63.77 and 46.56, suggesting the pair could face selling pressure soon.

AUDJPY Key Levels

Demand Levels: 102.390, 109.370, 115.000
Supply Levels: 93.590, 90.120, 86.060

AUD/JPY Long-Term Trend: Bearish

The SMA serves as resistance, and a failure to reclaim this level will likely confirm further downside momentum. The price action shows that AUDJPY recently formed a lower high near $101.770, marking a failed bullish attempt to break significant resistance. Rejection from this level aligns with the bearish structure, and the price is now heading towards the support zone around $93.580. The formation of the Fair Value Gap (FVG) indicates an imbalance, reinforcing a potential move lower to fill this area, especially after the short-term rebound.

If the current bearish pressure persists, AUDJPY could drop to test the $93.580 support level. A decisive break below $93.580 will expose the next key support at $90.110. On the upside, $97.030 remains a key resistance, and failure to close above it will strengthen bearish projections toward these lower targets.

AUDJPY Short-Term Trend: Bullish

On lower time frames, AUDJPY maintains its bullish retracement, with price action forming higher highs and higher lows. However, this trend is seen as temporary, with a structural shift anticipated to align with the broader bearish trend.

Should the diagonal support get invalidated by the impending crash, AUDJPY might cross below the 96.000 price level. Traders are advised to watch for signs of reversal as the market is getting overbought.

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