- Currently, the AUD/JPY is creating a right shoulder of the inverse head-and-shoulders pattern with the neckline resistance at 79.76.
- A break above the neckline would confirm a bearish-to-bullish trend change and would open up upside toward 81.00 (target as per the measured height method).
- A bull breakout may turn into a bull trap if the Chinese yuan continues to slide, triggering risk aversion and boosting haven demand for the JPY.
Hourly Chart
Spot Rate: 79.52
Daily High: 79.58
Daily Low: 79.25
Trend: Bullish above 79.76
Resistance
R1: 79.76 (neckline resistance)
R2: 80.00 (psychological hurdle)
R3: 80.28 (200-period EMA on 4-hour chart)
Support
S1: 79.10 (low of the previous 4-hour candle)
S2: 78.68 (Sept. 7 low)
S3: 78.56 (Oct. 26 low)