AUDJPY Weekly Outlook (ICT & Smart Money Concepts Analysis)

AUDJPY is currently trading in a strong higher-timeframe bullish trend, but recent price action shows clear signs of short-term distribution and potential liquidity engineering at the highs. This creates a high-probability environment for both:

  • Continuation trades (trend-following)
  • Short-term reversal setups (mean reversion from premium zones)

This week will likely be driven by how price reacts around the 113.80–114.50 liquidity zone.


Macro Overview: AUDJPY Drivers This Week

AUDJPY is a risk-sensitive pair, heavily influenced by:

AUD (Risk Currency)

  • Commodity demand (China outlook)
  • Risk sentiment (equities)
  • RBA policy expectations

JPY (Safe Haven Currency)

  • BoJ monetary stance
  • Yield curve control policies
  • Risk-off flows

Core Narrative

  • If markets remain risk-on → AUDJPY continues higher
  • If markets shift risk-off → JPY strengthens → AUDJPY drops

Weekly Timeframe Analysis (Institutional Bias)

Structure

  • Clear bullish trend since 2022 lows
  • Strong sequence of:
    • Higher highs
    • Higher lows
    • Multiple BOS confirmations

Current Positioning

  • Price trading near weekly highs (~114.00–115.00)
  • Approaching major buy-side liquidity

Key Zones

Premium (Sell Zone)

  • 113.80 – 115.20

Discount (Buy Zone)

  • 108.00 – 110.00

Weekly Insight

  • Market is in premium pricing
  • Expect:
    • Liquidity sweep above highs
    • Potential retracement

Daily Timeframe Analysis (Directional Context)

Structure

  • Strong bullish trend intact
  • Recent:
    • BOS → continuation
    • Weak high formation

Key Observations

  • Price has formed:
    • Equal highs (liquidity pool)
    • Slight rejection at highs

Key Zones

Supply

  • 114.00 – 115.00

Demand

  • 110.50 – 111.50

Interpretation

  • Likely scenario:
    • Sweep highs → retrace
    • Or consolidate before continuation

4-Hour Timeframe (Smart Money Behavior)

Structure

  • Recent CHoCH after bullish run → early bearish signal
  • Followed by:
    • Pullback
    • Attempted continuation

Zones

Supply

  • 113.80 – 114.50 (weak highs / liquidity zone)

Demand

  • 112.00 – 112.50
  • 110.80 – 111.20

Liquidity Map

  • Buy-side liquidity:
    • Above 114.20
  • Sell-side liquidity:
    • Below 112.00

Insight

  • Market likely:
    • Sweeps highs first
    • Then rotates lower

1-Hour Timeframe (Execution Layer)

Structure

  • Mixed structure:
    • Bullish trend
    • But recent CHoCH → caution

Key Observations

  • Sharp rejection from highs
  • Weak bullish retracement
  • Internal liquidity forming

Zones

Supply

  • 113.80 – 114.20

Demand

  • 113.00 – 113.20

Strategy

  • Look for:
    • Liquidity sweep above highs
    • Bearish confirmation

30-Minute Timeframe (Sniper Entry Framework)

Current Behavior

  • Consolidation near highs
  • Building inducement

Setup Logic

  • Equal highs → liquidity pool
  • Ideal:
    • Sweep highs
    • Displacement down

Entry Model (ICT)

  • Liquidity grab
  • Market structure shift
  • Entry from FVG / OB

High-Probability Trade Setups


🔴 Scenario 1: Bearish Reversal from Premium (Primary Setup)

Narrative

Smart money pushes price above equal highs → traps breakout traders → reverses into inefficiency.


Entry Plan

  • Entry zone:
    • 113.80 – 114.50
  • Confirmation:
    • 30M / 1H CHoCH

Stop Loss

  • Above 114.80

Targets

  • TP1: 113.00
  • TP2: 112.20
  • TP3: 111.00

Confluence

  • Weekly premium
  • Daily supply
  • 4H distribution
  • Equal highs liquidity

🟢 Scenario 2: Bullish Continuation (Trend Following)

Narrative

If price fails to break lower and instead reclaims structure, continuation resumes.


Entry Plan

  • Entry zone:
    • 112.80 – 113.00
  • Confirmation:
    • Bullish CHoCH

Stop Loss

  • Below 112.20

Targets

  • TP1: 114.20
  • TP2: 115.00

Confluence

  • Trend continuation
  • Demand zone
  • Risk-on sentiment

⚖️ Scenario 3: Range Consolidation

Range

  • 112.80 – 114.20

Strategy

  • Sell highs
  • Buy lows
  • Use intraday structure

ICT Concepts Applied

Key Smart Money Elements

  • BOS → confirms trend
  • CHoCH → signals reversal
  • Equal highs → liquidity pool
  • Order blocks → institutional entries
  • Fair Value Gaps → inefficiencies

Primary Model

➡️ Liquidity Sweep → Displacement → Entry


Economic Events to Watch This Week

AUD (High Impact)

  • RBA Monetary Policy Signals
  • Employment Data
  • China Economic Data (GDP, PMI)

➡️ Strong AUD:

  • Bullish AUDJPY

➡️ Weak AUD:

  • Bearish AUDJPY

JPY (High Impact)

  • Bank of Japan Policy Statements
  • Tokyo CPI
  • BoJ Governor Speeches

➡️ Hawkish BoJ:

  • Yen strength → AUDJPY falls

➡️ Dovish BoJ:

  • Yen weakness → AUDJPY rises

Geopolitical & Market Drivers

Risk Sentiment

  • Risk-on:
    • AUD strengthens
    • AUDJPY rises
  • Risk-off:
    • JPY strengthens
    • AUDJPY drops

Additional Factors

  • China growth outlook
  • Commodity prices (iron ore)
  • Global equity markets

Institutional Outlook Summary

Bullish Case

  • Holds above 112.50
  • Breaks 114.50 → targets 116

Bearish Case

  • Rejects 114.00–114.50
  • Breaks 112.80 → targets 111

Trading Plan Summary

Bias

  • Higher timeframe → Bullish
  • Short-term → Potential bearish correction

Best Strategy

  • Sell premium zones
  • Buy confirmed demand

Key Levels

  • Resistance: 113.80 – 114.50
  • Support: 112.80 – 113.00

Final Insight (Professional Perspective)

AUDJPY is currently in a textbook smart money distribution zone, where:

  • Retail traders are buying breakouts
  • Institutions are likely offloading positions

Highest Probability Setup

➡️ Liquidity sweep above 114 → bearish reversal toward 112–111


Important Reminder

  • Do not anticipate → wait for confirmation
  • Let liquidity be taken first
  • Enter only after structure shift
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