A setup is simply “a setup.” For now, the AUDJPY trend is down, but the reversal pattern is developing in the AUDJPY.
The AUDUSD has been under pressure the last week after reversing from the 2018-19 trend line (blue) but is coming to a confluence of support.
The BOC decision Wednesday may have a little more impact for the CADJPY considering the major confluence of resistance we hit today.
The USDJPY broke down under pressure with yields falling and gold rallying, the natural path of least resistance for the pair was lower.
The EURJPY tested major resistance ahead of the ECB meeting. When a pair hits a level so many times, we often refer to that level the “bull/bear” line.
The GBPJPY is moving lower within a descending wedge as we surpass the 127% extension of the Feb lows to March highs.
The GBPJPY (aka the Guppy) is closing in on some key support at the 127% Fibonacci extension of the February lows to highs and the 261% extension of the last rally at the 138.90-139.40 level.
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.