- AUD/JPY looks north with a descending triangle breakout on the hourly chart.
- The pair looks set to challenge resistance lined up above 75.00.
AUD/JPY’s quick recovery from session lows near 73.20 to 74.20 seen in the last two hours has confirmed a descending triangle breakout on the hourly chart.
The pattern indicates that the pullback from the June 8 high of 76.79 has ended and the broader uptrend from the March 19 low of 59.87 has resumed. That, coupled with the above-50 or bullish reading on the 14-day relative strength index (RSI) suggests scope for a test of resistance at 75.09 (June 16 high). A violation there would expose the recent high of 76.79.
On the downside, a close under Monday’s low of 72.71 is needed to put the sellers back into the driver’s seat.
4-hour chart
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Trend: Bullish
Technical levels
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