⬤ AUD/JPY delivered a strong upside move in recent sessions, bouncing sharply from a well-defined technical support zone on the one-hour chart. The move came after a corrective decline into an extreme equal-legs area, where downside pressure disappeared and price reversed decisively higher. This reaction marked a clear shift in short-term momentum and kicked off a renewed advance.
⬤ The strong bounce from the equal-legs zone confirmed the underlying Elliott Wave structure. The chart shows the corrective phase wrapping up near 105.20–105.30, labeled as wave C ((ii)). From that low, AUD/JPY pushed up impulsively in a clear five-wave sequence that carried price to new highs above 108.50, reinforcing the dominant bullish trend.
⬤ After hitting those highs, AUD/JPY moved into a pullback phase that looks corrective rather than a reversal. Price action is holding well above the invalidation level near 105.16, keeping the bullish outlook intact. The analysis notes selling isn't recommended at current levels, highlighting the strength of the trend despite short-term consolidation. As long as price stays above key support, the Elliott Wave count continues pointing higher.
⬤ This technical setup matters for the forex market since AUD/JPY often serves as a gauge for broader risk sentiment. A strong and sustained climb in the pair shows continued demand for higher-yielding currencies versus the Japanese yen. The successful defense of the equal-legs support area reinforces confidence in the current trend, while the ongoing pullback will show whether momentum rebuilds for another push higher or shifts into wider consolidation.
