AUDJPY has been in an uptrend and has tapped the resistance level at the price point of 95.30. This resistance is a solid resistance and has the potential to push the market down. On H4, this current rejection would mark another bearish leg towards the downside, marking it another lower high to make the structure bearish.

The ascending trendline is on the verge of breakout sell. Once the breakout sell is occurred, the validation will be pending for the closure of the candles below the trendline. That breakout sell has been validated by the breakout sell and now on a lower timeframe, we are having another breakout sell in the making. On the resistance side, we have descengint trendline which is being rejected by the market right now.

The resistance level is in confluence with the golden retracement area of 75-78.6%. This confluence has a strong impact on the bearish leg of AUDJPY. This price is at 94.90. We will be taking the shorts from here.

EMA 50 is still bullish. After the breakout buy, the EMA 50 was unable to be retested. Once we take the short position, we can carry it long till the retest of the EMA 50. With that we can extend our profits as well.

RSI is at 50. The oscillator needs to bring itself down below the 50 level at this current resistance level. Once the oscillator is below the 50 level, there will be an additional confirmation from the oscillator point to continue the market moving down.

AUDJPY at a supply zone

Jul 26 2022

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