AUD/JPY failed to follow through on a bullish breakout above 94.00, despite initial signs of strength from a bullish hammer and inverted H&S pattern. The pair has since printed a bearish engulfing candle on the daily chart to take prices near the lows of its range of the past week.
With the 1-hour RSI (2) hitting oversold levels, a minor bounce is possible, but risks remain skewed to the downside. A break beneath 93.70 would confirm a range breakdown and open the door to a deeper pullback towards the high-volume node (HVN) at 93.85.
Matt Simpson, Market Analyst at City Index and Forex.com.
With the 1-hour RSI (2) hitting oversold levels, a minor bounce is possible, but risks remain skewed to the downside. A break beneath 93.70 would confirm a range breakdown and open the door to a deeper pullback towards the high-volume node (HVN) at 93.85.
Matt Simpson, Market Analyst at City Index and Forex.com.
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.