AUD/JPY breaks out of bullish apex, heading towards 90.370
The pair has been able to break out above the crucial apex point of symmetric triangle at around 86.738 on 11th and sustained the uptrend rallies thereafter 2nd week.
After the breach, the pair managed to travel up to 89.110 decisively with volume confirmation where it has surpassed resistance at 87.562 and achieved our earlier targets at 88.496.
More importantly, as shown in the diagram symmetric triangle pattern is spotted out,
Breakout on above direction: The future direction of the breakout can only be determined after the break has occurred. Even though a continuation pattern is supposed to breakout in the direction of the long-term trend, this is not always the case.
Breakout Confirmation: This break has to be considered a valid, because it is on a closing basis. We noticed a price bounce (about 2% breaks above) or time (sustained more than 5 consecutive days) filter to confirm validity.
For more substantiation, leading oscillators like RSI and slow stochastic curves are showing positive convergence with the upswings; we believe this as bulls are getting active.
RSI is currently trending at around 49.7506 that have been showing upward convergence to the price bounces, while stochastic reached 80 levels but no convincing crossover of %D line, instead %K line is spiking steeply.
Currently, the bullish swings were rejected near strong resistance at 89.297 but overall trend is still bullish bias.
Most likely scenario: For now, the pair is likely to hit resistance 89.297, if it breaks these levels on a closing basis which would undoubtedly expose towards next resistance at 90.370. Hence, it is advisable to buy at every decline for targets at around 89.297 and next at 90.370.
Alternative scenario: Even if the prices drops, throw back to the apex point at 86.50 levels would be maximum level and crucial support is seen at that levels again.
After the breach, the pair managed to travel up to 89.110 decisively with volume confirmation where it has surpassed resistance at 87.562 and achieved our earlier targets at 88.496.
More importantly, as shown in the diagram symmetric triangle pattern is spotted out,
Breakout on above direction: The future direction of the breakout can only be determined after the break has occurred. Even though a continuation pattern is supposed to breakout in the direction of the long-term trend, this is not always the case.
Breakout Confirmation: This break has to be considered a valid, because it is on a closing basis. We noticed a price bounce (about 2% breaks above) or time (sustained more than 5 consecutive days) filter to confirm validity.
For more substantiation, leading oscillators like RSI and slow stochastic curves are showing positive convergence with the upswings; we believe this as bulls are getting active.
RSI is currently trending at around 49.7506 that have been showing upward convergence to the price bounces, while stochastic reached 80 levels but no convincing crossover of %D line, instead %K line is spiking steeply.
Currently, the bullish swings were rejected near strong resistance at 89.297 but overall trend is still bullish bias.
Most likely scenario: For now, the pair is likely to hit resistance 89.297, if it breaks these levels on a closing basis which would undoubtedly expose towards next resistance at 90.370. Hence, it is advisable to buy at every decline for targets at around 89.297 and next at 90.370.
Alternative scenario: Even if the prices drops, throw back to the apex point at 86.50 levels would be maximum level and crucial support is seen at that levels again.
