AUDJPY Bounce or Breakdown? Key Levels Ahead

AUDJPY is currently showing bullish signs after a Change of Character (CHoCH) occurred at the 93.800 level. This breakout suggests potential for upward continuation.

The ZigZag structure also supports a bullish wave continuation, with the next Fibonacci-based target around 94.840.
A possible pullback remains valid as long as the price stays above the support zone at 92.700. Any breakdown below that level could weaken the bullish structure.

---------------------
📍 4H Chart Analysis (Supportive Confirmation)



On the higher timeframe (4H), the market appears to be forming an Inverse Head and Shoulders pattern, a strong bullish reversal structure.

- The price is currently building the right shoulder, with a potential neckline breakout targeting 96.000, a strong psychological resistance.

- Two major scenarios to consider:

1. ✅ If price breaks above the neckline and sustains above 96.000, it could lead to a strong bullish rally.

2. ❌ If price fails to complete the pattern and breaks below the shoulder zone at 92.000, it may trigger a bearish move instead.
---------------------

🧠 Conclusion
As long as 92.700 holds, the 1H bullish scenario remains valid with a near-term target of 94.840. The 4H chart adds strong structure support via the developing Inverse Head & Shoulders, favoring buyers — unless invalidated by a breakdown below 92.000.

📈 Active Bullish Setup (Above 92.700)
🎯 Target: 94.840 | Max Bull Potential: 96.000
🛑 Invalidation Below: 92.700 / 92.000 (4H shoulder base)