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Based on the fact that the support trend-line is slightly more sloped than the upper trend-line, the trading range could continue narrowing. This in turn implies that the currency pair may suddenly slip, as the rising wedge is appearing on an hourly chart.
Once the support at 89.15 fails to evoke a rally, AUD/JPY will likely fall through the daily S1 at 88.65 down to a tough area around 88.02, it consists of the 200-hour SMA and the daily S2. Meanwhile, the interim resistance is at 89.78, it safeguards the up-trend resistance line at 90.02. Together they are supposed to limit the possible near-term rallies.
© Dukascopy Bank SA