The AUDJPY has rallied back to key resistance which is the previous support from the June lows and also the 61.8% Fibonacci retracement at the 73.83.
A setup is simply “a setup.” For now, the AUDJPY trend is down, but the reversal pattern is developing in the AUDJPY.
Ahead of the RBA decision tonight the AUDJPY has broken key support as the China/US trade negotiations apparently are strained.
The AUDJPY broke out of the 2019 range and into new yearly highs last week. As long as we remain above the 79.80 level the risk remains to the upside.
The AUDJPY fell aggressively overnight to channel support following RBA Governor Lowe’s comments about the path of the next rate move would be.
The AUDJPY spiked past resistance and tagged the 61.8% key Fibonacci retracement and also the channel resistance.
The AUDJPY broke higher above the 38% retracement and now targets the 61.8% retracement near 85.50 with a bull flag formation supporting the move higher.