It should be no surprise with stocks moving to all time highs the AUDJPY (because of the strong equity markets positive correlation) is following suit.
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.