AUD/JPY Chart AnalysisAUD/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.
