- AUD/JPY daily chart shows inverse head-and-shoulders breakout.
- 100-day moving average (MA) hurdle is capping upside in Asia.
The AUD/JPY witnessed an inverse head-and-shoulders breakout on Monday as subsiding US-China trade tensions put a bid under the risk assets.
The bullish breakout indicates the sell-off from the January 23 high of 89.07 has ended and has opened the doors to rally above 86.00 (target as per the measured height method).
However, as of writing, the pair is struggling to cut through the 100-day MA of 84.17 in a convincing manner. A break higher will likely happen on the back of a sustained rally in the risky assets. As of writing, the S&P 500 futures are trading flat to negative.
AUD/JPY Technical Levels
Multiple daily closes above 84.17 (100-day MA) would allow a rally to 85.63 (200-day MA), above which a major resistance is seen at 85.80 (61.8% Fib R of Jan-Mar drop). On the downside, support is seen at 83.50 (5-day MA), 82.92 (10-day MA), 82.60 (21-day MA).
-636625512218330022.png)
Share
