AUDJPY 4H Signal: Rejection Near 112.00 Resistance
Analysis:
AUDJPY on the 4-hour timeframe has been trading inside a broader bullish structure, forming higher highs and higher lows after the strong bounce from the 108.00–108.50 demand zone. This move created multiple Break of Structure (BOS) signals to the upside, confirming bullish momentum during the previous impulse phase.
However, the rally recently stalled near the 111.80–112.00 liquidity area, where the market formed a weak high. This level represents a key resistance zone where sellers previously stepped into the market, and price has struggled to maintain momentum above it.
Currently, the pair is trading around 111.30, consolidating below the resistance zone. The inability to break above 112.00 suggests that the market may enter a short-term corrective phase before any continuation of the broader trend.
If price continues to reject this level, a retracement toward the nearest demand zones around 110.20 and 109.50 becomes likely. These levels represent previous liquidity areas where buyers may attempt to defend the bullish structure.
As long as AUDJPY remains below 112.00, the probability favors a corrective bearish move toward lower liquidity zones.
Trade Setup:
Enter: Sell below 111.20
Stop-Loss (SL): 112.20
Target A: 110.20
Target B: 109.50
