AUDJPY: Bearish Momentum May Likely End Soon

Overall market sentiment regarding the pair remains bearish.
The currency pair could still increase despite its negative moves.

AUDJPY Weekly Price Analysis – July 31
AUDJPY Price may experience a bullish reversal at the $92.846 support level if the bulls should add more force to their activities in the market, a $96.880 high level may be reached.

AUDJPY Market
Key Levels:
Resistance levels: $95.600, $95.750 $95.900
Support levels: $91.500, $91.350,$91.200

AUDJPY Long-term Trend: BearishOn the daily chart, the AUDJPY currency pair is trading below the moving averages, which is a bearish trend zone. The impulse move by the sellers at a $93.570 low level during yesterday’s session sustained the bearish momentum and maintained it.

Activities from the bears further drop the price of AUDJPY down to $92.846 low level below the moving averages as the daily session opens today. This means that the bears are having more strength in the market at the moment.

However, the AUDJPY pair is around the 30% range of the daily stochastic in the oversold region, which indicates that the selling pressure is likely to end sooner, therefore we expect the buyers to take us to a significant level in the resistance area sooner in its long-term view.

AUDJPY Medium-term Trend: BearishThe currency pair is in a bearish trend zone in its medium-term outlook. After breaking the $94.268 of the upper channel the bulls pushed the price further up to the $94.933 high level shortly after yesterday’s opening before momentum loss AUDJPY dropped to the $93.609 support level before the end of the session.

The sellers continue the journey down south and drop the market price of the AUDJPY currency pair to the $92.846 support level as the 4-hourly chart opens today.

The bears lost momentum as the bulls return briefly into the market and move the price of the Yen up to a $93.325 high level below the moving averages; this suggests that the bulls are trying to recover the market gradually at the moment.

Thus, more downside is unlikely as the market is oversold already, the pair has fallen below the 20% range of the daily stochastic. It implies that the selling pressure is likely to end soon. This will compel the bulls to emerge in the days ahead and push the price up may likely encounter a trend reversal whereby buyers will emerge to push the price of AUDJPY up in the days ahead in the medium term.

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