AUD/JPY – 1H – BUY

The 1H AUD/JPY signal has fired a cluster of bullish indicators, including a Trendline Break Up, Falling Wedge breakout, BOP Zero Cross Up, STOCH KD Cross Up, WILLR OB Entry, and multiple moving average retreats (DEMA, EMA, KAMA). These signals align on the 1H chart, indicating a strong bullish reversal attempt. However, the higher timeframes (2H, 4H, 8H, 12H) remain bearish, with the 4H showing a very strong downtrend. This creates a conflict: the 1H bullish momentum is counter to the broader bearish trend, suggesting a potential counter-trend rally or a pullback within a larger downtrend.

Key levels to watch are the nearest resistance at 112.980 and support at 109.231. A break above resistance could signal a stronger reversal, while a failure to hold above support would invalidate the bullish case. The bullish signals on the 1H are strong, but traders should be cautious given the bearish higher timeframe alignment. The trend scores across timeframes are still forming (2/5) on the lower timeframes, indicating that the bullish trend is not yet fully established.