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Like everywhere else in the FX markets, AUDJPY saw its share of volatility. The pair ended up testing 11-year lows to 59.88.
It may have found a temporary bottom, as the current bounce suggests, and carries the potential for further gains.
The hourly chart above suggests we are trading above a potential inverse H&S neckline break.
A retest, halt, and pullbacks off the neckline, would fortify that the reversal pattern is in place.
In such a case, we look for rallies to carry on towards the 69.00 region. The target is the upper band of the potential current bull channel in play (BLUE lines).
The zone marked in the red circle indicates where the retest to the downside can come into play and that it needs to hold and provoke bounces for a swing up.
The chart below is an 8-hour layout on an extended target beyond 68.50-69.00, coming to 72.50-73.00.
Both the charts indicate that 64.00 region needs to hold if gets a test and provokes bounces. This should set up potential rallies aiming f...
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