AUDJPY has finally broken out of its ascending channel – but not in the direction bulls were hoping for After weeks of steady gains the pair ran into strong resistance near 94.60 forming a tight consolidation range near the top of the channel That was the first warning sign Now price has broken below both the channel and key support zones, and things are shifting fast.🔍 What We’re Seeing:
Price rejected the channel top with double tops and wicks – signs of exhaustion.
A clean break and close below the ascending trendline.
Price is now trading below a key Fair Value Gap (FVG) and retesting broken structure from below.
📉 Bearish Scenario:
If this rejection holds we could see:
Further downside continuation toward 92.50 then 92.00
A potential pullback to the FVG or the underside of the channel before further drop.
Resistance now sits at 93.84–93.40 with price likely to struggle above this zone.
📌 Key Levels:
Resistance Zone: 93.84 – 93.43
Support Zones: 92.52 and 92.04
Potential Retest Area: 93.00 – 93.25
🧠 Trade Idea:
This is a classic breakout + retest structure. A clean rejection of the retest zone could offer a high-probability short setup, with confirmation on lower timeframes. Be cautious of false breakouts and manage risk accordingly.
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Best Regards TrendLinford!
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.