AUD/JPY Bearish Outlook: Potential Breakdown Toward 83.516?1. Chart Pattern: Descending Wedge/Channel
The chart shows a clear downward sloping channel, indicating a bearish trend.
Price has been making lower highs and lower lows, suggesting selling pressure.
2. Key Levels
Resistance: The upper boundary of the descending channel acts as resistance.
Support: The lower boundary of the descending channel serves as support.
Major Target: The projected price movement (indicated by the arrow) suggests a drop toward 83.516, which appears to be a strong support level.
3. Moving Average (EMA 200)
The 200 EMA (94.639) is being tested.
If price breaks below the 200 EMA, it could signal further downside.
4. Recent Price Action
The price is currently at 95.848, having dropped -1.43% in the latest session.
If it fails to hold this zone, a breakdown could accelerate selling pressure.
5. Bearish Breakdown Scenario
A break below 95.000 could trigger further selling.
If price follows the projected path, a move to 83.516 is possible.
Conclusion
Bearish bias in the medium term.
Watching for a breakdown below 94.639 (200 EMA) for confirmation.
If the lower channel support holds, a bounce could occur.
Traders should look for confirmation signals before entering a position.
