AUDJPY has been at the resistance level at the price level of 88.20. This level needs to be respected in order for the market to continue moving down. Apart from this, the market needs to form a bearish price action in order to validate the confirmation of the shorts. 

The descending trendline is residing at the support side of the market and we have an anticipation of the market lowering down towards the testing of the trendline. 

There is no retracement element in this setup.

The EMA 50 is bearish and the market needs tap the EMA 50 at the resistance level. Right now, the market seems below the EMA 50, due to which it might not be tapped at the level. 

RSI is at 40. We have already seen the bullish divergence being formed at the price level and the RSI. This divergence will be neutralized if the market is unable to break the resistance towards the upper side. 

Apart from this, although market is at the support level, the trend remains bearish for now. We will continue to see the short positions on this pair.

AUDJPY at the resistance of price 88.20

Mar 16 2023