AUDJPY Buyers May Lose Control

Upward pressure still dominates both the higher and medium-term time frames.
It is very likely that buyers lose control as a pin bar hammer can be spotted to change the trend.

AUDJPY Weekly Price Analysis – October 1
The AUDJPY buyers may lose control as sellers are gathering momentum to change the trend. Should the bears trigger their selling action, the Yen price might start dropping soon. If this is achieved, the target may possibly be the $80.00 lower support level.

AUDJPY Market
Key Levels:
Resistance levels: $94.00, $95.00, $96.00
Support levels: $89.00, $88.00, $87.00

AUDJPY Long-term Trend: Bullish
On the daily chart, the AUDJPY pair is trading above the moving averages, which means that it’s in a bullish trend zone. Meanwhile, buyers may lose control as the market is trending downwards on the price signal.

The bulls’ pressure on the currency pair at the $95.97 supply value during yesterday’s session further led to the price trading above the supply levels in recent times.

Today’s daily opening pin bar candle at the $96.92 value above the two EMAs is bullish as the bulls remain dominant in the market.

This is an indication of trend reversal: therefore, if sellers could prove stronger and exchange hands with buyers at the current price, the price of AUDJPY may drop down to retest the $86.05 lower value.

Notably, the stochastic signal pointing down at around level 60% in the overbought region implies that AUDJPY buyers may lose control soon and the market may likely begin its downtrend, as a result, the $80.00 lower support value might be the target in the days ahead in its long-term perspective.

AUDJPY Medium-term Trend: Bullish
On the medium-term outlook, the AUDJPY market still trades in a bullish trend. The sustained bullish pressure at the $96.01 high level in the previous session actually made it possible for the Yen price to remain above the supply level in recent times.

Buyers lost control as the bears came in and dropped the price of AUDJPY down to a $95.98 support level above the EMA-50, below the EMA-9 as the 4-hour chart opens today. This suggests that sellers are coming in gradually to stage a play while buyers are losing control.

Should sellers trigger their action the pair may drop down further to a $93.58 low value to invalidate any further bullish thesis.

Adding to this, the price of AUDJPY is pointing down on the daily stochastic and the market is experiencing bearish pressure as the bears are rolling into the market and dropping the price of the Yen down to the $95.98 support level.

In light of this, the Yen might drop further to a $80.00 lower support level in the coming days in its medium-term perspective.

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