“Head & Shoulder” Pattern of AUD/JPY Keeps It Drowning
Arslan Butt • 1 min read
The Australian Dollar has disappointed to gain support despite having positive news about Chinese government funding local companies. The trade war sentiments and fears are way stronger as investors eye G20 summit to have a better understanding of potential tariffs.
Let’s now swiftly move to the technical side of the market as AUD/JPY has formed a cool trade setup, and it seems worth trading today.
On the 4-hour chart of AUD/JPY, the pair formed the “Head and shoulders” pattern. However, the same pattern was formed on the hourly chart as well. The neckline of the head and shoulder pattern carrying much importance from a trading viewpoint as it extends significant support to the pairs. In this case, the neckline support prevailed at 75.45, which recently got violated.
Now the same neckline support is likely to work as a resistance. Until the pair stays below 75.47, we can anticipate a drop towards 74.96. As soon as the pair closes above 75.47 on the 4-hour chart, we may see a bullish trend to target 75.80.