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    AUD/JPY analysis: technical breakout expected above 76

    By Nathan Batchelor

    16:03, 7 October 2020

    AUD/JPY

    The Australian dollar has made a notable recovery against the Japanese yen over recent days, as the risk-sensitive pair comes back into favour with traders and investors.

    AUD/JPY analysis shows that a rally back towards 77 seems likely if the price moves above the 76 resistance level.

    AUD/JPY medium-term price trend

    The Australian dollar has been rising against the Japanese yen over recent days, as global equity markets are boosted over hopes of a second coronavirus stimulus package. Traders and investors pay close attention to the AUD/JPY pair, as it is often a reliable gauge of risk sentiment in the foreign exchange market.

    AUD/JPY technical analysis highlights that a large bullish reversal pattern continues to loom over the higher time frames. The daily time frame shows that a complex inverted head-and-shoulders pattern, with more than 1,600 points upside projection, remains in play.

    AUD/JPY analysis

    Looking more closely at the bullish reversal pattern, the neckline is found around the 76.60 resistance level. It is possible that the pair trades in a range between the 70 and 76.60 levels, as the pattern forms multiple right-hand shoulders to complete its overall structure. 

    US100

    14,483.60 Price
    +1.320% 1D Chg, %
    Long position overnight fee -0.0255%
    Short position overnight fee 0.0032%
    Overnight fee time 21:00 (UTC)
    Spread 1.8

    BTC/USD

    26,522.05 Price
    +0.420% 1D Chg, %
    Long position overnight fee -0.0616%
    Short position overnight fee 0.0137%
    Overnight fee time 21:00 (UTC)
    Spread 60.00

    Oil - Crude

    71.04 Price
    -2.010% 1D Chg, %
    Long position overnight fee -0.0153%
    Short position overnight fee -0.0066%
    Overnight fee time 21:00 (UTC)
    Spread 0.03

    Gold

    1,964.64 Price
    +1.270% 1D Chg, %
    Long position overnight fee -0.0185%
    Short position overnight fee 0.0103%
    Overnight fee time 21:00 (UTC)
    Spread 0.30

    Overall, watch out for an eventual breakout above 76.60 to take the AUD/JPY pair beyond 90.

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    AUD/JPY short-term price trend

    AUD/JPY technical analysis highlights that the pair has a bullish bias while the price trades above the 75.15 support level. The one-hour time frame is also showing the presence of a smaller inverted head-and-shoulders pattern. According to analysis, the neckline of this bullish reversal pattern is currently located around the 76 technical region. 

    AUD/JPY analysis

    Strength above the neckline of the pattern may create short-term buying pressure, and encourage bulls to rally the pair back towards the 77 technical area.

    AUD/JPY technical summary

    AUD/JPY analysis shows that an extremely large, complex inverted head-and-shoulders pattern continues to unfold across the daily time frame.

    Markets in this article

    AUD/JPY
    AUD/JPY
    93.357 USD
    0.085 +0.090%

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