AUDJPY Retest Watch for 95

AUDJPY has successfully broken out of a long-standing descending trendline on the daily timeframe, signaling a potential trend reversal after a prolonged bearish phase. This breakout was followed by a classic retest, where price pulled back to validate the previous resistance line now acting as new support.

Key Technical Observations:

• The trendline, connecting multiple swing highs since late 2023, has been clearly violated to the upside.
  
• A minor consolidation followed the breakout, which now appears to be testing the broken trendline.
  
• The pair is forming higher lows, suggesting bullish intent and buyer interest on the retest.
  

Bullish Scenario:

• Entry Zone: Around 92.00–92.50, during or after the retest confirmation.
  
• Target 1: 95.00 (previous swing high)
  
• Target 2: 96.68 (Fibonacci extension and prior horizontal resistance)
  
• Target 3: 101.37 (major resistance from late 2023)
  
• Stop Loss: Below 91.20 or under the retest low (safe zone: around 90.80).
  

Alternative (Bearish) Scenario:

• If the price fails to hold above the broken trendline and closes below 91.00, the breakout could be a false move.
  
• In that case, downside pressure may push the price back toward 88.14 support.
  

Technical Context:
This setup is based on trendline breakout and retest, where a break and successful retest of a long-term descending trendline often leads to a bullish continuation. In essence, the structure of the chart reflects a potential trend reversal.