Missed this triangle breakout on AUD/JPY? The pair could still be in for a quick pullback before gaining traction on its climb!
Or is momentum already fading?
Either way, check out these inflection points I’m watching on the hourly chart:
AUD/JPY: 1-hour
AUD/JPY 1-hour Forex Chart by TradingView
A combo of strong Australian economic data and inaction from Japanese monetary authorities (so far!) allowed AUD/JPY to bust above its symmetrical triangle consolidation pattern lately.
However, some risk-off vibes also kept the pair’s gains in check near R2 (101.74), forcing price to retreat to the 38.2% Fibonacci retracement level which appears to have held as support.
Can the bullish breakout gain traction from here?
Remember that directional biases and volatility conditions in market price are typically driven by fundamentals. If you haven’t yet done your homework on the Australian dollar and Japanese yen, then it’s time to check out the economic calendar and stay updated on daily fundamental news!A pickup in upside pressure could continue to lift AUD/JPY back to the swing high or to new ones at R3 (103.53) while a larger correction could still drag the pair down for a retest of the former triangle top closer to the 61.8% Fib and 100 SMA dynamic inflection point.
The 100 SMA is above the 200 SMA to suggest that support levels are more likely to hold than to break, but a tumble below these dynamic support zones could still set off a reversal from the uptrend.
Don’t forget to keep tabs on this week’s set of top-tier news events, as well as any headlines that could impact overall market sentiment, when taking any trades.