AUD/JPY Signals Major Trend Reversal

In today’s technical analysis, let’s focus on AUD/JPY, where we are witnessing a significant trend reversal.

For several months, the pair was moving inside a channel up formation marked with green lines, clearly defining a stable uptrend. That structure has now been broken. The price moved below the lower boundary of the channel, which is a strong technical signal that the previous trend has ended.

March started relatively strong, but the second half of the month brought a sharp reversal. This shift has changed the overall sentiment and suggests that the market may now be entering a broader bearish phase.

At this stage, sentiment is clearly negative. The breakdown of such a long-term structure typically leads to continuation to the downside, at least in the medium term.

For sentiment to turn positive again, the price would need to reclaim several key levels. First, a move back above the yellow horizontal resistance. Second, a return above the lower boundary of the former channel, which now acts as resistance. And third, a breakout above the black downtrend line that is currently guiding the decline.

Only a move above all of these barriers would invalidate the bearish scenario and generate a buy signal.

For now, however, the technical picture remains clearly bearish, and the outlook favors further downside pressure.

Source: https://www.axiory.com/analytics/technical-analysis/aud-jpy-signals-major-trend-reversal