AUDJPY Analysis The 4-hour chart of the AUD/JPY pair shows consolidation after recent volatility, highlighting a significant structural change in market behavior. The price initially fell sharply from the 94.00 level, then fell to the 86.00 level, showing a strong and persistent downtrend. This aggressive decline broke several support levels and turned the overall structure bearish. The downtrend continues, with strong red candles with small dips, indicating aggressive selling pressure. After a sharp decline, the price found significant support above the 86.00 level. This support area triggered a rapid recovery, which sparked a massive uptrend that pushed prices higher in a relatively short period of time. This notable recovery represents a clear structural change, suggesting that buyers have regained control from these lower levels. The price continued to move towards the 90.60 area but encountered resistance there. After several failed attempts to break this level, it now appears to be a short-term price range. The price is currently trading within a narrow consolidation range between 90.35 and 90.90. This area represents a potential consolidation or divergence phase, depending on the breakout direction. Repeated tests of the support level at 90.35 and the resistance level at 90.90 suggest that momentum has stalled. If the price breaks above 90.90 with any certainty, it could retest the upper resistance line and initially target the 91.60 level, which coincides with the consolidation area before the downtrend. A sustained move above this level would open up the 92.80, perhaps 94.00, levels where selling pressure has previously been evident. On the downside, a break below the immediate support level of 90.35 could revive bearish sentiment. If the downtrend continues, the price could fall to 89.70, where a secondary support base will begin to form. Just below this, the levels of 88.90 and 87.20 act as lower support levels. These areas have served as key turning points for price movements in the past. The 86.00 area has remained a key support level in the long term, which triggered the recent bullish reaction and fueled the recovery rally. This chart structure indicates that the market has moved from a trend to a range. The trend so far has been clearly down, and the strong recovery that occurred after the failure to rise above 90.90 has not yet been confirmed as a full trend change. The current price is trading within a consolidation structure and it could form a continuation or continuation reference pattern depending on which area is broken first. This situation often leads to a breakout scenario where prices rise after price pressure. Looking at the broader structure, the previous sell-off in the 94.00 area represented a major structural break that took the pair out of its previous uptrend. The recovery since then has been strong, but it has yet to reclaim major broken support levels, which will now act as resistance. Therefore, price fluctuations within the 90.35 to 90.90 range are important. When the price moves above this area, it determines the next phase of the market trend and whether this consolidation is a continuation of the recovery or a temporary trend before a sharp decline. Overall, this chart shows a significant turning point. The price is moving into a consolidation zone in a strong downtrend, with the possibility of an uptrend continuation or a downtrend reversal. Key price levels to watch are 90.35 and 90.90, which could be immediate breakout signals, while broader targets are 91.60, 92.80, and 94.00. In a downtrend, the levels of 89.70, 88.90, 87.20, and 86.00 will be important in assessing the pace of the downtrend resumption. The structure of the trend has not yet been determined, and the market scenario will largely depend on the strength and continuity of the upcoming breakout.
