FX.co ★ Kenwood | AUD/JPY

The AUDJPY pair on the H4 timeframe shows a generally bullish market structure despite the recent pullback. Price action has been trending upward for several weeks, forming a sequence of higher highs and higher lows. This indicates that buyers still maintain overall control of the market. The chart also includes three moving averages, which help confirm the broader trend direction. The red moving average, representing the long-term trend, is clearly sloping upward. Price is trading well above this level, suggesting that the market remains in a strong bullish environment. The yellow moving average, which reflects the medium-term trend, is also pointing upward and currently acting as dynamic support. Recently, the price pulled back toward this yellow line and found support near it, indicating that buyers are defending this level. The blue moving average, representing the short-term trend, shows that the market experienced a temporary correction after reaching a recent high around the 113.60 area. During this correction, price moved below the blue moving average but remained above the yellow and red averages. This type of movement is often considered a healthy pullback within a larger bullish trend rather than a full trend reversal. From a momentum perspective, the RSI indicator is currently near the neutral 50 level. Earlier, the RSI moved down from a higher zone, reflecting the recent bearish correction. However, the indicator is beginning to stabilize and slightly rise again, which could signal that bullish momentum is gradually returning to the market. When RSI holds around the mid-level during an uptrend, it often suggests consolidation before another potential upward move. In terms of key levels, the 112.00–111.80 region appears to be an important support zone, as price recently bounced from this area. On the upside, the 112.80–113.20 region may act as short-term resistance. A strong break above this level could open the path for another attempt toward the previous high near 113.60. Overall, the market structure still favors buyers as long as price remains above the medium- and long-term moving averages. Traders may look for bullish continuation signals after consolidation, while also monitoring support levels in case the pullback deepens.