Date: February 8, 2026
Market Summary
AUD/JPY is currently testing a
key resistance zone after a short-term bullish run. Momentum is slowing, and traders are watching whether the pair will continue
upwards or reverse into a bearish pullback.
Key Levels
- Resistance: 106.20 – Recent swing high and psychological barrier.
- Support: 105.00 – Short-term low providing buying interest.
- Pivot: 105.60 – Intraday pivot for range trading.
Trend Analysis
- Short-Term Trend: Bullish on 1H and 4H charts, forming higher highs and higher lows.
- Daily Trend: Neutral to slightly bullish, but momentum weakening near resistance.
- Indicators:
- RSI: 68 – approaching overbought, potential for pullback.
- MACD: Histogram flattening – bullish momentum slowing.
Price Action Signals
- Candlestick patterns near resistance indicate indecision: small-bodied candles and wicks suggest potential reversal.
- Support at 105.00 shows multiple bounces, confirming buying interest for potential long trades.
Trading Ideas
- Reversal Trade:
- Consider short near resistance 106.20 if bearish candlestick patterns appear (e.g., pin bar, engulfing candle).
- Target: 105.60–105.00
- Stop-loss: Above 106.40
- Trend Continuation Trade:
- Buy on pullback to support 105.60–105.80 with confirmation from bullish candles.
- Target: 106.20–106.50
- Stop-loss: Below 105.40
- Breakout Trade:
- Enter long on daily close above 106.20, targeting 106.80–107.00.
- Stop-loss: Below 106.00
Conclusion
- AUD/JPY is at a critical decision zone.
- Traders should watch:
- Resistance 106.20 for potential reversal
- Support 105.00 for trend continuation
- Strategy: Combine trend, price action, and indicators to confirm entries before trading.
