AUDJPY Uptrend Encounters Resistance

Market Analysis – August 1

The AUDJPY market, which had previously established a bullish reversal, faced significant resistance at the 95.4490 level. Buyers leveraged the key support zone near 92.1320 to fuel an upward push, eventually breaking above the initial resistance. Since then, the price has sustained a bullish trajectory but has now encountered a fresh resistance barrier, prompting a potential consolidation phase.

AUDJPY Long-Term Trend: Bullish

The broader AUDJPY uptrend has developed within a well-defined parallel ascending channel, reinforcing the bullish bias. Before the decisive breakout above the 95.4490 resistance, the Machine Learning Lorentzian Classification Indicator had already signaled a bullish market environment. Despite a notable retracement triggered by the resistance, the indicator remained steadfast in its bullish outlook, effectively filtering out short-term noise and preventing premature sell signals.

Currently, price action has stalled near the 97.320 resistance level, forming a double-top pattern—a potential reversal signal. This has led to a retest of the support boundary of the bullish channel, which will be crucial in determining whether the uptrend remains intact or if a deeper correction unfolds.

AUDJPY Short-Term Trend: Bullish

On the lower timeframes, the price has shown strong responsiveness to the supporting trendline, bouncing decisively after testing it. This bullish reaction aligns with a recent MACD crossover, where the MACD line has crossed above the signal line, reinforcing upward momentum. Traders should watch for a potential retest of the 97.3200 resistance, which could determine whether the price resumes its uptrend or faces further rejection. A decisive break above 97.320 could open the door for further gains, while a failure to hold the channel support may signal a deeper pullback.