AUDJPY Breaks Out: Unveiling a Promising Buy Signal
03 July 2023
In today's technical analysis, we delve into the dynamics surrounding the AUDJPY currency pair, which currently showcases an attractive buy signal. To understand the big picture, we must go back to mid-March 2023 when the AUDJPY pair embarked on a Channel Up formation.
This formation was breached to the upside on June 9th, signifying a strong bullish momentum. The price continued to rise for a week until a bearish correction set in on June 19th. This correction took the shape of a wedge (marked red on the chart).
The wedge pattern concluded at the end of June with a bullish breakout, just as anticipated. A wedge pattern, which is typically a trend continuation pattern, hinted at a bullish breakout considering the preceding bullish trend. The price broke the upper line of the wedge and ascended higher, providing a strong long-term buy signal.
As long as the price stays above the upper line of the Channel Up formation, the positive sentiment will likely persist. At this point, the odds for a further rise appear to be quite high.