AUD/JPY Technical Analysis: Bearish Momentum Targets 95.00 and 94.00
The AUD/JPY pair is showing signs of weakening momentum, with key resistance holding firm. We anticipate a downward move toward 95.00 and 94.00 in next days.
Muhammad Faraz 
Bearish Momentum in AUDJPY. Targets are 95.00 and 94.00
The AUD/JPY pair is showing signs of weakening momentum, with key resistance holding firm. Based on the price structure, we anticipate a downward move toward 95.00 and 94.00 in the coming days.
Key Levels to Watch
Resistance Zones (Selling Opportunities)
- Immediate Resistance: 96.289 (Today’s High)
- Strong Resistance: 96.500 (Psychological & Recent Swing High)
- Breakout Invalidation: 97.000 (Bullish Trend Confirmation)
Support Zones (Downside Targets)
- First Target: 95.624 (Near-Term Support)
- Second Target: 95.000 (Major Psychological Level)
- Final Target: 94.500 – 94.000 (Next Demand Zone)
Technical Analysis Breakdown
1. Bearish Price Structure
- The pair has failed to break above 96.500, indicating seller dominance.
- Lower highs suggest weakening bullish momentum.
- A breakdown below 96.000 could accelerate the drop toward 95.00.
2. Volume & Momentum Confirmation
- Current volume: 20.61K (No significant buying pressure).
- Lack of strong bullish candles reinforces downside potential.
3. Downside Projection
- A break below 96.000 opens the path to 95.624 (initial target).
- Further weakness could extend toward 94.500 – 94.000 (next key demand zone).
Trading Strategy
Entry Scenario (Short Trade)
- Trigger: Breakdown below 96.000 with increasing volume.
- Target 1: 95.624 (Partial Profit)
- Target 2: 95.000 (Take Profit Zone)
- Stop Loss: 96.500 (Above Recent High)
Alternative Scenario (If Reversal Occurs)
- A sustained move above 96.500 could invalidate the bearish outlook.
- Watch for bullish reversal patterns before considering longs.
Fundamental Factors to Monitor
- Bank of Japan (BoJ) Policy: Any hawkish shift could strengthen JPY.
- Australian Economic Data: Weakness in AUD jobs or GDP may accelerate declines.
- Risk Sentiment: AUD/JPY is sensitive to market risk appetite.
Final Verdict
AUD/JPY is primed for a drop toward 95.00 and 94.00 if sellers maintain control below 96.500. Traders should watch for a confirmed breakdown below 96.000 for short opportunities, while keeping an eye on BoJ and RBA developments for potential shifts.
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