Is AUDJPY's Recent Upswing a Prelude to a Long-Term Bull Run?
08 September 2023
The AUDJPY currency pair has recently caught the attention of traders, with a noteworthy upswing characterizing its recent price action. This isn't merely a random bullish blip on the radar – the technical underpinnings suggest significant support mechanisms at play.
To begin, the pair has found considerable support from a long-standing uptrend line, illustrated with a black color on the chart. Further bolstering the bullish case is its bounce from the upper boundary of a wedge pattern, delineated by red lines. The confluence of these two supports underscores their combined significance in maintaining the upward momentum of AUDJPY.
Yet, beneath these supports lies another crucial one: a horizontal support zone hovering around the 92.7 mark, highlighted in yellow. This level acts as a safety net, providing an added layer of resilience to the pair's bullish undertones. As long as AUDJPY remains north of these three key supports, the trading bias leans positively.
Given today's bounce and the prevailing momentum, eyes are now set on a potential hurdle: the horizontal resistance stationed at 94.9, depicted in green. A definitive breach of this resistance could open the floodgates for more extended gains, potentially signaling a long-term buying opportunity for traders and investors.
In essence, the AUDJPY pair seems to be navigating through a technical maze, with each support and resistance offering clues to its next move. The roadmap is clear, with the green-marked 94.9 level being the immediate checkpoint to watch. A successful conquest of this level might be the green light for more prolonged bullish action.