AUDJPY has undergone a significant correction, sliding from the 109.00 peak down to the 106.20 region. However, the bears have hit a massive roadblock. We are currently seeing a strong reaction from a historical demand zone (105.80 – 106.00), marked by the clear rejections in the shaded circles on the chart.
🔍 The Critical Battleground: 106.00 – 106.60
The price is currently hovering around 106.57. This "buffer zone" between current levels and the demand floor is make-or-break for the next major move.
🚀 The Bullish Scenario (Hold & Bounce)
If buyers can maintain support above 106.60 and consolidate north of the demand zone, we have a clear path for a recovery.
Target: 🎯 108.15
Rationale: Sustained trading above 106.60 confirms that the historical demand is holding and the correction is over.
One more chance is price slides down till 106 and then bounce back above 106.50 which transforms into re-entry.
⚠️ The Bearish Scenario (Break & Flush)
If the bulls lose their grip and the price slides back through the floor, I’ll be switching my bias.
Trigger: A clean break below 105.85.
Target: 🎯 104.80
Rationale: Once 105.80 fails, the historical support flips to resistance, opening the trapdoor for a deeper sell-off.
💡 Summary: I am watching the 106.60 level closely. As long as we stay above it, the outlook remains cautiously optimistic for a move back toward 108+.
🔍 The Critical Battleground: 106.00 – 106.60
The price is currently hovering around 106.57. This "buffer zone" between current levels and the demand floor is make-or-break for the next major move.
🚀 The Bullish Scenario (Hold & Bounce)
If buyers can maintain support above 106.60 and consolidate north of the demand zone, we have a clear path for a recovery.
Target: 🎯 108.15
Rationale: Sustained trading above 106.60 confirms that the historical demand is holding and the correction is over.
One more chance is price slides down till 106 and then bounce back above 106.50 which transforms into re-entry.
⚠️ The Bearish Scenario (Break & Flush)
If the bulls lose their grip and the price slides back through the floor, I’ll be switching my bias.
Trigger: A clean break below 105.85.
Target: 🎯 104.80
Rationale: Once 105.80 fails, the historical support flips to resistance, opening the trapdoor for a deeper sell-off.
💡 Summary: I am watching the 106.60 level closely. As long as we stay above it, the outlook remains cautiously optimistic for a move back toward 108+.
Trade active
Book partial profits at 107.60Trade closed: target reached
Target of 108.15 easily hit
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.
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.