AUD/JPY broke under a Descending Triangle, opening the door to resuming the downtrend that started in June. Still, confirmation is notably lacking, with key support at 79.84 still remaining in play. Taking out the latter could open the door to material losses. Positive RSI divergence does show that downside momentum is fading, which can precede a turn higher. As such, traders ought to proceed with caution.
Price pulled back to retest the 50 fib. If price fails to create a new low at the key level, we could see the highs being tested if not broken.
Price pulled back to retest the 50 fib. If price fails to create a new low at the key level, we could see the highs being tested if not broken.
