AUDJPY Trading Volume Declines Amidst Correction

Market Analysis – August 13

The AUDJPY currency pair has experienced a steady upward trajectory with a gradual incline since April. Throughout this period, trading volume remained consistent with minimal daily fluctuations. However, the market downturn in July triggered a notable increase in trading volume, which has now begun to normalize as the current correction unfolds.

AUDJPY Key Levels

• Demand Levels: 90.30, 86.00, 80.40
• Supply Levels: 99.20, 102.60, 107.80

AUDJPY Long-Term Trend: Bearish

The current bearish shift was first indicated by the crossover of the Moving Averages. The 9-period Moving Average fell below the 21-period Moving Average, signalling a trend reversal. Additionally, the demand zone at 102.69 was breached, and the previous bullish trendline was invalidated.

The scarcity of upward daily candles from July 11 to August 5 highlights the pronounced price decline during this period. Trading volume surged significantly, as evidenced by the daily chart. The final candle, which touched the demand level at 99.30, displayed a long wick below, indicating a rebound from this zone and initiating a retracement. Since this retracement began, trading volume has consistently declined.

AUDJPY Short-Term Trend: Bullish

The decline in trading volume is also evident on the 4-hour timeframe. The Stochastic oscillator is nearing the overbought region on the higher timeframes and is already in the overbought zone on the 4-hour chart. The supply level at 99.20 is approaching, presenting a potential entry point for the best forex signals as the price may resume its downward movement.