AUD/JPY UPDATE
**AUD/JPY Faces Sharp Rejection at 100.00: Bearish Momentum Set to Test Key Support**
The AUD/JPY pair recently attempted to breach the critical psychological barrier of 100.00, but this move turned out to be a classic fake breakout. After briefly touching this significant level, the market swiftly reversed, with a prominent bearish candle signaling a rejection of the resistance zone. This failure has reignited selling pressure and suggests that the market’s bullish momentum is faltering.
In recent weeks, AUD/JPY has been trading within a broad range, oscillating between the support at 93.00 and resistance at 100.00. With the recent rejection near the top of this range and the subsequent break below the upward trendline, the technical outlook has shifted decisively bearish. The break and close below the trendline is a crucial signal, indicating that the previous bullish structure is no longer intact, and sellers are regaining control.
Given this setup, we are likely to witness a sharper decline in the coming sessions, with the market potentially heading towards a retest of the lower end of the established range. My immediate target is the key support level at 96.20, which could act as a temporary floor before further downside or a potential reversal. This support zone is critical, as it aligns with historical price reactions and could either trigger a bounce or open the door to deeper corrections.
To sum up, the rejection at the 100.00 level, coupled with the break below the trendline, points to increased bearish momentum in AUD/JPY. A retest of the 96.20 support level seems likely in the near term. Traders should monitor this zone closely for clues on whether the bearish momentum will persist or if buyers will attempt to defend the support and push prices back towards the upper end of the range.
Traders, if you found this idea helpful or have your own insights to share, feel free to drop a comment. I’d love to hear your thoughts!
The AUD/JPY pair recently attempted to breach the critical psychological barrier of 100.00, but this move turned out to be a classic fake breakout. After briefly touching this significant level, the market swiftly reversed, with a prominent bearish candle signaling a rejection of the resistance zone. This failure has reignited selling pressure and suggests that the market’s bullish momentum is faltering.
In recent weeks, AUD/JPY has been trading within a broad range, oscillating between the support at 93.00 and resistance at 100.00. With the recent rejection near the top of this range and the subsequent break below the upward trendline, the technical outlook has shifted decisively bearish. The break and close below the trendline is a crucial signal, indicating that the previous bullish structure is no longer intact, and sellers are regaining control.
Given this setup, we are likely to witness a sharper decline in the coming sessions, with the market potentially heading towards a retest of the lower end of the established range. My immediate target is the key support level at 96.20, which could act as a temporary floor before further downside or a potential reversal. This support zone is critical, as it aligns with historical price reactions and could either trigger a bounce or open the door to deeper corrections.
To sum up, the rejection at the 100.00 level, coupled with the break below the trendline, points to increased bearish momentum in AUD/JPY. A retest of the 96.20 support level seems likely in the near term. Traders should monitor this zone closely for clues on whether the bearish momentum will persist or if buyers will attempt to defend the support and push prices back towards the upper end of the range.
Traders, if you found this idea helpful or have your own insights to share, feel free to drop a comment. I’d love to hear your thoughts!
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