AUD/JPY 4-Hour Technical Analysis: Bearish Channel in Play

Note: This section contains information in English only.
Source: Dukascopy Bank SA
AUD/JPY 4-hour chart currently exhibits a Descending Channel pattern, characterized by a series of lower highs and lower lows contained within two parallel downward-sloping trendlines. This structure signals a prevailing bearish sentiment in the medium term.

The price is currently hovering near the 110.218 level, positioned in the middle of the channel after failing to break above the 60-period Simple Moving Average, which is now acting as dynamic resistance. The RSI is trending downward at 39.728, the market has not yet reached oversold conditions, leaving room for further possible downside.



Support is firmly established at the 109.800 and 108.500 horizontal levels, which align with the lower boundary of the channel. Conversely, a breakout above the upper trendline and the 111.800 resistance would be required to shift the bias from bearish to bullish. Traders should watch for a test of the channel's floor or a consolidation phase before any significant trend reversal.

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