AUDJPY: Bulls May Lose Control

The AUDJPY bulls may lose control.
The currency pair could still decrease despite a minor uptick.

AUDJPY Weekly Price Analysis – August 18

Today, the AUDJPY bulls may lose control of the market as the market buying pressure seems to be dropping. Thus, a further increase in the bear’s pressure may break down at the $90.11 low level, and this may push the price down to the $88.00 lower support value, suggesting a sell signal for the short traders.

AUDJPY Market
Key Levels:
Resistance levels: $100.00, $101.00 $102.00
Support levels:    $97.00, $96.00, $95.00

AUDJPY Long-term Trend: Bearish (Daily Chart)

The AUDJPY bulls can lose control over the market as it remains below the supply levels, indicating a bearish trend on the daily chart.

The impulse move by the short traders to the $96.75 low level in the past few days sustained the bearish momentum before buyers returned during yesterday’s session.

The daily chart opens today with a bearish candle at the $98.45 support level below the supply levels, implying that the AUDJPY bulls may lose control.

Increased momentum by the bears drops the market price further down to the $97.80 low mark below the resistance levels, an indication of a slight weakness in the strength of the bulls as the journey down south continues.

Meanwhile, the AUDJPY bulls may lose control if the bears add more aggression to their selling pressure and break down at the $90.11 previous barrier, signaling a sell trade.

Notably, the signal of the stochastic oscillator points down at around level 88% in the overbought region, suggesting the overall outlook shows downward momentum and the bulls may lose control, while a temporary drawdown may occur within the range in the days ahead in the long-term.

AUDJPY Medium-term Trend: Bullish (4H Chart)

In the medium term, the AUDJPY bulls may lose control as the market price action is in the overbought region. The price bar is above the EMA-50, suggesting a bullish trend.

The sustained bullish pressure at the $98.65 high level during the last session has made the Yen price trade above the supply levels in its recent price level. However, the bulls may lose control as the market buying pressure will soon be exhausted.

Today’s 4-hourly chart at the $98.40 support level above the EMA-50 indicates that the AUDJPY pair is in an uptrend.

It’s worth noting that the AUDJPY bulls may lose control, and the upward trajectory could face another barrier below the resistance at the $90.11 support value if the bears could speed up their selling momentum; a breakdown below this level could propel the Yen trade lower by 20%.

The stochastic oscillator signal points down at around level 85% at the overbought region, suggesting that the AUDJPY bulls may lose control soon as the market bears resumes the selling pressure.

Hence, the selling pressure may commence, and this may lead the Yen price to the $90.11 lower support value in the days ahead, while the bulls may lose control in the medium term. Hence, sellers may wait for this action to commence before taking a position in the medium term.

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