AUDJPY is tapering down a triangle formation in response to the tussle for dominance from buyers and sellers. The plunge in price was halted definitely at the 78.140 support level and an uptrend began. Price retested the 80.260 key level before climbing upward. By the 81.900 key level, the market was rejected and started falling again. A higher low was attained before AUDJPY resumed its uptrend movement. Currently, price is reacting around the 80.260 key level.
AUDJPY Critical Levels
Resistance Zones: 81.500, 81.900, 83.110
Support Zones: 80.260, 78.850, 78.140
AUDJPY Long Term Trend: Bullish
The current tapering movement of the market is a result of the reaction of buyers to end bearish dominance in the market. Price began a downtrend on the 10th of May 2021 when the market fell short at 85.830. Subsequently, price started bouncing back in a downtrend with consistent lower lows. Buyers started putting up an opposition when price dropped to 80.260. This led to consolidation with the 81.500 resistance.
Sellers would still force the market downward, but that spelled the beginning of the tapering movement of the market as the plunge was halted abruptly and reverse at 78.140. This led to a tapering movement characterized by lower highs and higher lows. The RSI (Relative Strength Index) has its signal line climbing to the buying half of the chart. Price might contemplate breaking the upside of the triangle at this point. The Parabolic SAR (Stop and Reverse) confirms the strong current uptrend.
AUDJPY Short Term Trend: Bullish
The 80.260 support has stood strong to keep the market afloat. Price has retested the level twice and is now rising. The Parabolic SAR now shows 3 dots below the 4-hour candles to confirm the current market bullishness. The RSI signal line is above the mid-line at 54 and remains upward abounding.
Bulls will fancy breaking out upward from this point. If this happens, price is predicted to rise to bypass 81.900 and reach 83.110