© Dukascopy Bank SA
An ascending triangle pattern AUD/JPY has been forming since mid-May has just been breached to the downside. Since the currency pair has already reached the initial target at 95.21, there is a good chance the Aussie is going to re-visit a level of 96 before re-challenging and eventually pushing through the Jun 17 low and 200-period SMA in order to move closer to the May 21 low at 93.
The technical indicators, being bearish on the four-hour chart and bullish on the daily chart, suggest a similar scenario, but are not implying a sell-off in the longer-term perspective, which seems to be logical given the toughness of the resistance at 96 and beyond.
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