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Market Update: AUDJPY pushing at a new break higher?

October 4, 2021
by Joseph Jeffriess, Market Analyst

Hi traders, today we’re looking at the AUDJPY as buyers continue to build on their current fightback after last weeks seller test.

Today has been interesting on the risk front as equity markets have been tracking lower in Europe and we’ve seen lower US futures throughout the day. Buyer confidence has been firmer from risk majors to the safe-havens. The divergence remains at this stage and for now, we will have to follow what we see and let external influences sort themselves out.

The AUDJPY continues to push back at sellers after breaking the long-term downtrend and setting up its first LH and HH. after the LH was formed we have seen congestion develop and that’s the point we’re concentrating on this week.

After the buyers broke the last fast trend we have seen a base set up between 80.25 (support) and 80.83 (resistance). This resistance point also sits with a short-term supply area. Above that, we have further resistance seen at 81.00 even. Looking forward, we saw a fail low that maintains buyer momentum and control. Buyers need to break through 80.83 to show the new trend is going to continue. Further buying that breaks 81.00 could really start to show that buyers have a new short – Med term trend in play.

Today’s session so far is following the script, if sellers are able to regroup in the NY session and close back below 80.70 this could suggest that the 80.83 resistance and supply area could be a lot stronger than first thought.

Daily AUDJPY

All times are AEDT.