AUDJPY Turns Bearish as the Market Ends Its Bullish Trend at 98.600

Market Analysis – December 26

The AUDJPY market turns bearish as the market ends its bullish trend at 98.600. The market was moving bullishly up until recently. After the price struck the 86.100 support level in March 2023, the bullish swings started from the discount zone. The current downturn started at the end of the fifth wave, which was located in the 98.600 supply zone. Following the invalidation of the 96.800 swing bottom, an MSS (Market Structure Shift) confirmed the decline.

AUDJPY Key Levels

Demand Zones: 91.80, 86.10
Supply Zones: 96.90, 98.60

AUDJPY Long-Term Trend: Bullish

The market’s bears submitted their last blow as the first quarter of this year drew to a conclusion by pulling out of the market. When the AUDJPY rallied from 86.100 algorithmically, a new trend was initiated. The Stochastic Oscillator’s indicator, which indicated that the market was oversold, further supported the conclusion of the negative trend. From the discount zone, the rally proceeded algorithmically until the price broke through the prior resistance at 91.800, which marked the end of the first wave.

After a brief pullback at the 91.800 price level, the positive trend in AUDJPY persisted. The market quickly moved into the premium zone and broke over strong resistance at 96.900. Following the breach, there was a significant retreat that continued until the price reached the 91.800 mark again. The price invalidated the prior highs and reached the 98.600 supply zone during the last wave, which lasted for more than three months. Since the price reversed at an FVG that developed during the market structure change on December 2, 2023, the AUDJPY is currently bearish.

AUDJPY Short-Term Trend: Bearish

Following the MSS (Market Structure Shift), the market’s order flow has been bearish on the four-hour chart. The current trading range of the market lies between 98.600 and 93.700 price levels. After hitting the 79.0% Fibonacci retracement level, AUDJPY is expected to continue heading downward until the 93.700 low is breached.

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