AUD\/JPY has been forming an ascending wedge pattern since the start of June, and the prices are now near the formation top, indicating that a breakout can happen anytime soon. December 2019 swing high is the source of the current resistance line at the top of the said pattern.<\/p>\n
AUD\/JPY had an upward bias after the March low, and the flat tops along with rising lows indicating an ascending nature of the pattern point to a breakout to the upside.<\/p>\n
A strong close above 76.87 can confirm a bullish breakout.<\/p>\n
But the breakout will be in danger of fading out if price falters near 77.50, where the current zone merges with the trend-line starting from 2014. The area also has a series of swing-lows from early 2019.<\/p>\n
The ascending wedge breakout might prove very strong and would help the pair to push past this substantial resistance area. But if the pair falls-off the resistance and drive below the breakout point plus the lower side of the wedge: around 76.2 – the reversal will be severe.<\/p>\n
It is also possible for the pair to break down below the underside trend-line from here, and it will result in a bearish run. It could also turn into a fakeout and subsequent reversal higher.<\/p>\n
It will be better for traders to go along with the initial breakout and be aware of the chances of the pattern failure. All-in-all, a sizable move is in the offing considering the pattern formation and the price near a formidable resistance.<\/p>\n","protected":false},"excerpt":{"rendered":"
AUD\/JPY has been forming an ascending wedge pattern since the start of June, and the prices are now near the formation top, indicating that a breakout can happen anytime soon. December 2019 swing high is the source of the current resistance line at the top of the said pattern. AUD\/JPY had an upward bias after […]<\/p>\n","protected":false},"author":163946612,"featured_media":83094,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1547,2675],"tags":[3114,3113,3115],"class_list":{"0":"post-103292","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-aud","8":"category-jpy","9":"tag-ascending-wedge","10":"tag-aud-jpy","11":"tag-breakout"},"acf":[],"yoast_head":"\n