AUDJPY is currently showing signs of a bearish continuation after a corrective pullback from the recent swing low. Price has retraced up to the 0.786 Fibonacci level (92.447) and is now stalling below the key resistance zone near 93.200, which aligns with the 0.382–0.5 retracement levels. This confluence zone acts as a supply area, increasing the probability of downside movement.
🟩 Support Zone to Watch:
A major support and expected price reaction is anticipated around 91.560, which coincides with the 1.618 Fibonacci extension level. Further continuation may test deeper zones near 91.093 or even 90.800 if bearish momentum strengthens.
📰 Fundamental Outlook:
- 🇦🇺 Australia RBA Policy Hold: The Reserve Bank of Australia (RBA) held interest rates steady recently, signaling cautious optimism but refrained from any hawkish guidance. Markets have priced out further hikes, weakening AUD sentiment.
- 🇯🇵 BOJ Dovish Shift Easing: The Bank of Japan has started to unwind ultra-loose policy, hinting at more flexibility in yield control. This has brought some relief to the JPY, adding pressure on JPY pairs like AUDJPY.
- 📉 Risk Sentiment Cooling: Global equities have shown weakness due to concerns over slower Chinese growth and geopolitical tensions, making safe-haven assets like the Japanese Yen more attractive.
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AUDJPY – At a Critical Turning Point 📉📈
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My previous bearish view has failed as price rejected downside and surged higher. Now on the 4H chart, a double top is forming near 93.80.
🔸 Bullish if breakout above 93.80
🔸 Bearish if breakdown below 92.00
We're at a decision zone — next week should confirm the breakout or rejection. Watching closely. 👀
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.