AUD/JPY Chart Analysis
**Key Patterns Identified:**
1. **Rectangle Pattern (Range-bound Market)**
- The price traded within a horizontal range, forming a consolidation zone.
- Two clear support touches at the bottom of the range (labeled as Bottom 1 and Bottom 2).
- The price respected both support and resistance levels multiple times before breaking out.
2. **Double Bottom Formation**
- A classic reversal pattern, signaling potential bullish momentum.
- Bottom 1 and Bottom 2 indicate strong support, where buyers stepped in.
- The breakout above the rectangle confirms the pattern, suggesting further upside potential.
**Breakout Confirmation:**
- The price successfully **broke out** above the rectangle's resistance.
- Volume increased during the breakout, supporting bullish momentum.
- Moving Averages (EMA 7, 21, and 50) are aligned bullishly, confirming the uptrend.
**Target Projection:**
- The expected target is measured based on the rectangle’s height.
- The breakout suggests a potential move towards **97.00** as the next resistance zone.
**Key Levels to Watch:**
- **Support:** 94.50 (previous range support), 95.00 (psychological level).
- **Resistance:** 96.00 (current price zone), 97.00 (breakout target).
**Conclusion:**
- **Bullish Bias:** Price action and technical indicators favor more upside.
- **Watch for Retests:** A pullback to the breakout zone (around 95.00) could offer buying opportunities.
- **Risk Management:** If price re-enters the rectangle, the breakout may fail, requiring reassessment.https://www.tradingview.com/x/bsHnQJMu/
**Key Patterns Identified:**
1. **Rectangle Pattern (Range-bound Market)**
- The price traded within a horizontal range, forming a consolidation zone.
- Two clear support touches at the bottom of the range (labeled as Bottom 1 and Bottom 2).
- The price respected both support and resistance levels multiple times before breaking out.
2. **Double Bottom Formation**
- A classic reversal pattern, signaling potential bullish momentum.
- Bottom 1 and Bottom 2 indicate strong support, where buyers stepped in.
- The breakout above the rectangle confirms the pattern, suggesting further upside potential.
**Breakout Confirmation:**
- The price successfully **broke out** above the rectangle's resistance.
- Volume increased during the breakout, supporting bullish momentum.
- Moving Averages (EMA 7, 21, and 50) are aligned bullishly, confirming the uptrend.
**Target Projection:**
- The expected target is measured based on the rectangle’s height.
- The breakout suggests a potential move towards **97.00** as the next resistance zone.
**Key Levels to Watch:**
- **Support:** 94.50 (previous range support), 95.00 (psychological level).
- **Resistance:** 96.00 (current price zone), 97.00 (breakout target).
**Conclusion:**
- **Bullish Bias:** Price action and technical indicators favor more upside.
- **Watch for Retests:** A pullback to the breakout zone (around 95.00) could offer buying opportunities.
- **Risk Management:** If price re-enters the rectangle, the breakout may fail, requiring reassessment.https://www.tradingview.com/x/bsHnQJMu/
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.