The 80.760 Support Lifts AUDJPY Above the Descending Channel in Bullish Tactics

AUDJPY Price Analysis – August 9

The 80.760 support has been used by buyers to lift AUDJPY out of depression. The market has been unsuccessful in trying to push out of 85.000 for several months since March. Bears have exploited this weakness to plummet the market below 82.900. AUDJPY has thus far been sliding down a descending channel. 82.900 support also tried to keep price afloat, but ultimately bowed to pressure from bears.

AUDJPY Significant Levels

Resistance Levels: 85.000, 82.900, 81.500
Support Levels: 80.760, 79.800, 78.200

AUDJPY Long Term Trend: Bearish

The middle line of the descending channel is responsible for the cranking movement of the price as it slides downward. The 80.760 support already showed its tendencies to rebel against the downtrend from the 27th to the 29th of July 2021, but the bears bypassed it. By the time price retraced above it, it took advantage of being at the edge of the upper border to shift the market from the channel pathway.

A reaction from the sellers is expected at this junction and already the daily candles have fallen back to the 80.760 support. It remains to be seen if the support can be tenacious enough to at least force the market into a ranging movement. The RSI (Relative Strength Index) shows that AUDJPY lies in the selling zone of the chart and the action of the bulls is just a bump in the road on the way downwards. Bearish pressure therefore remains.

AUDJPY Short Term Trend: Ranging

Bulls will capitalize on the shift of the price out of the descending channel to force the market into consolidation before they try to shift the market in their direction. If the 80.760 price support becomes too weak to withstand the bearish pressure, buyers will fall back to stronger weekly support at 79.800 to push their agenda.

If the market holds above 80.760, the price will likely begin consolidation with 82.900 resistance. But if bears force the market down, 79.800 will be stronger to carry out this agenda.

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