AUD/JPY Price Analysis: Sidelined after bullish breakout

  • AUD/JPY is flatlined in Asia despite Wednesday’s bullish breakout. 
  • A failed breakout would expose support below 76.50.

AUD/JPY jumped 0.15% to 76.65 on Wednesday, confirming an upside break of a four-week-long narrowing price represented by trendlines connecting July 22 and Aug. 12 highs and July 30 and Aug. 24 lows. 

The breakout indicates that the rally from the low of 72.50 observed in June has resumed. So far, however, that has failed to invite stronger buying pressure. The pair is currently trading largely unchanged on the day near 76.65, having faced rejection at 76.83 early today. 

Some chart-driven buyers may exit the market if the pair falls back inside the contracting triangle, That’s because a failed breakout is widely considered a powerful bearish signal. 

On the downside, support is seen at 76.43 – the hourly chart higher low – which, if breached, would shift the focus to 75.61 (Aug. 24 low). 

Daily chart

Trend: Neutral

Technical levels

 

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