AUD/JPY Technical AnalysisAUD/JPYOANDA:AUDJPYMarketStrategysignals📉🇦🇺 AUD/JPY Technical Analysis – Bearish Structure After Trendline Breakdown 🔥 The AUD/JPY 2-hour chart has undergone a significant shift in market structure. After respecting a well-defined ascending channel for several sessions, price failed to maintain bullish momentum and experienced a decisive breakdown. This change in character indicates that buyers have lost control, while sellers have taken over with strong momentum. The recent impulsive bearish move confirms that the market sentiment has turned negative in the short term. 📊 Market Structure Price previously traded inside a healthy ascending channel, consistently forming higher highs and higher lows. However, after failing to break above the 114.68 resistance, buying pressure weakened and the market began printing lower highs. The eventual break below the rising trendline confirmed a bearish market structure shift (MSS), signaling the end of the previous uptrend. The sharp bearish impulse that followed demonstrates aggressive institutional selling and suggests that the current trend favors the downside unless buyers can reclaim key resistance levels. 🚨 Bearish Momentum The strong bearish candles indicate that sellers are dominating the market. Large-bodied candles with very little bullish response reflect high selling pressure and increasing downside momentum. Instead of showing signs of immediate recovery, price continues trading below the broken trendline, reinforcing the bearish outlook. 🎯 Fair Value Gap (FVG) & Order Block The highlighted Fair Value Gap (FVG) and Bearish Order Block between approximately 112.00–112.55 represent the most important area to monitor. This zone could attract price for a temporary retracement before sellers re-enter the market. 📌 Why this zone matters: 🔴 Previous institutional selling originated from this area. ⚡ The Fair Value Gap may act as a liquidity magnet. 📉 Bearish rejection here would provide confirmation that sellers remain in control. ✅ A failed retest would strengthen the probability of another impulsive move lower. 📍 Key Levels 🔴 Resistance 114.68 – Major resistance from previous swing highs. 112.00–112.55 – Bearish Order Block and Fair Value Gap (primary sell zone). 🟢 Support 110.31 – Immediate support and the current downside objective. A confirmed break below 110.31 could expose even lower price levels as bearish momentum accelerates. 📈 Possible Scenarios 🐻 Bearish Scenario (Preferred) Price retraces into the FVG/Order Block. Sellers reject the retracement. Bearish momentum resumes. 🎯 Target: 110.31, with further downside if support fails. 🐂 Bullish Alternative A bullish recovery would require: Strong buying pressure. A clean breakout above the Order Block. Sustained trading above 112.55. Without these confirmations, bullish rallies are more likely to be corrective pullbacks rather than a true trend reversal. ⚠️ Risk Management Avoid chasing the current bearish move after such a strong decline. The higher-probability setup is to wait for price to retrace into resistance and look for bearish confirmation, such as rejection candles, bearish engulfing patterns, or lower-timeframe market structure shifts before considering short positions. 🧠 Conclusion AUD/JPY has transitioned from a bullish trend into a confirmed bearish market structure after breaking its ascending channel. The strong downside impulse reflects increasing seller dominance, while the highlighted Fair Value Gap and Bearish Order Block provide an attractive area for a potential retracement. As long as price remains below 112.55, the bearish bias remains intact. A rejection from the supply zone would increase the probability of another decline toward 110.31 and potentially lower levels. 📌 Bias: 🐻 Bearish 🎯 Sell Zone: 112.00–112.55 (FVG + Order Block) 🎯 Target: 110.31 and below 🛑 Invalidation: Sustained close above 112.55 with strong bullish momentum.