AUDJPY Transitions From Bearish to Bullish Reversal

Market Analysis –  Deember 24

AUDJPY struggled to surpass the bearish order block at 101.600 in October. This resistance led to price stagnation between 99.740 and 101.600. Eventually, the pair declined, testing an unmitigated bullish order block near 95.580. This movement triggered the formation of a double bottom bullish reversal pattern, suggesting potential upward momentum.

AUDJPY Key Levels to Watch

Demand Zones: 95.580, 93.870, 92.080
Supply Zones: 98.330, 101.600, 104.660

AUDJPY Long-Term Trend: Bearish

Before November’s decline, a head-and-shoulders reversal pattern emerged, confirming bearish momentum. This pattern indicated a strong likelihood of continued selling pressure.

Additionally, the Super Trend indicator turned red, further signaling sustained downward movement. However, the bullish order block test at 95.580 marked a potential turning point. The appearance of a failed low at this level indicated a pause in the downtrend. Simultaneously, the Stochastic indicator entered the oversold region, prompting an upward thrust in price.

AUDJPY Short-Term Trend: Bullish

A clear bullish shift in market structure has developed on the 4-hour chart. This follows the price rebound from the daily bullish order block at 95.580. The ongoing uptrend faces resistance at 98.330, a critical level for further progress. A break above this resistance could confirm a sustained bullish reversal in the short term.

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