AUDJPY Surges into Liquidity Region at 92.400

Market Analysis – June 6

AUDJPY made a significant leap from the demand level at 94.40 to reach relatively equal highs at 92.400. The bullish order flow in AUDJPY is expected to persist as the price surpasses the resistance level at 92.400.

AUDJPY Key levels

Resistance Levels: 92.400, 93.000
Support Levels: 90.400, 89.800, 89.160

AUDJPY Long-term Trend: Bullish

Since early May, AUDJPY has been utilizing the bullish trend line on the daily chart to sustain its upward trajectory. Following the third test of the bullish trend line, the market experienced a significant dip that challenged the bullish trend line. It appeared that the market had shifted direction towards a downward trend. The break of the trend line, coupled with the sweeping of recent lows in late May, indicated a potential bearish reversal, particularly considering the overbought condition of the Stochastic oscillator.

The price dipped into a fair value gap above the support level of 89.80. However, the market took off suddenly as buyers unleashed substantial buying pressure, breaking through the resistance level at 92.40.

AUDJPY Short-term Trend: Bearish

The swift upward movement of the price above 92.40 has created a fair value gap below the resistance level. A retracement towards the inefficiently traded region is anticipated, considering the overbought reading on the Stochastic oscillator.

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