AUDJPY Breakout Above 111.7: Momentum Continuation After Recovery

Forex

Traders' Opinions

Summary:

UDJPY is trading around 111.7–111.9, showing strong recovery from early April lows near 109.5. The market is driven by renewed risk-on sentiment and JPY weakness, pushing the pair back toward mid-range highs....

BUY AUDJPY

EXP

TRADING

111.750

Entry Price

112.800

111.000

111.731 +0.060 +0.05%

0.0

Pips

Flat

111.000

Exit Price

111.750

Entry Price

112.800

Overview

As of today, AUDJPY is trading around 111.75, aligning closely with your entry level, and marking a strong rebound after dipping to ~109.5 earlier this week. This recovery is significant because it shows buyers stepping back in aggressively after a short correction phase. Structurally, the pair remains within a broader bullish range, having previously reached highs near 113–114 in March, meaning the current move is a continuation attempt rather than a new trend. What is critical is that price has reclaimed the 111.5–111.7 zone, which previously acted as resistance, now turning into support. This shift suggests that the market is transitioning back into bullish continuation rather than staying in correction.

Market Sentiment

Market sentiment is currently bullish with improving risk appetite. AUD, being a risk-sensitive currency, is benefiting from stabilization in global sentiment, while JPY remains structurally weak due to accommodative monetary policy. The key insight here is the speed of the rebound: moving from ~109.5 to ~111.8 within days indicates strong demand rather than slow accumulation. This type of movement often leads to continuation, not reversal. However, since price is approaching mid-range resistance, buyers need to maintain momentum to avoid turning this into a lower high structure.

Technical Analysis

AUDJPY Breakout Above 111.7: Momentum Continuation After Recovery_1

On the M15 timeframe, AUDJPY is showing a bullish continuation structure after breakout.

Bollinger Bands (20,2) are expanding with price pushing along the upper band, confirming strong upward momentum. There is no immediate sign of mean reversion, which supports continuation bias.

Ichimoku (9,26,52) shows price clearly above the cloud, with Tenkan-sen above Kijun-sen and both sloping upward, confirming bullish trend strength. The cloud ahead is also turning bullish, reinforcing continuation probability.

Stochastic (5,3,3) is in overbought territory but not crossing down, which indicates sustained buying pressure rather than exhaustion.

Key structure insight shows that 111.5–111.7 is now strong support, while 112.3–112.8 is the next resistance zone. If price holds above support, continuation toward these levels is likely.

Trading Recommendation

Entry: 111.75

Take Profit: 112.8

Stop Loss: 111.0

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