AUD/JPY rebounded at 86.81, then at 85.17 and has formed a falling wedge pattern on the 4h chart. The formation has 69% quality along with 64% magnitude in a 44-bar period.
The price was fluctuating in a wide downward range during last two weeks, after it had been capped near 88.63, the six-month high. The RSI indicator is fluctuating in the tight range near its oversold level at 30%, which lead to the present bearish trend. If the price decreases, the first target for bears could be at 83.30/42, where the present support level stands.
Bullish corrections in downward patterns are shorter in comparison with bearish price movements. Long traders may focus their attention on the support level at 83.30/42. If the price bounces off at 83.42 or above, it may lead to a possible trend change. The first target for long traders could be around 84.31.