AUDJPY forming a head and shoulders pattern

The risk sentiment appears to be rebounding on Wednesday, ahead of the FOMC meeting, and the AUDJPY cross was trading slightly higher on the day, hovering at around 75.00.

However, it looks like the price is forming a very nice head and shoulders pattern, which in this case, is a bearish reversal formation. The blue rectangles are representing the structure of this formation. 

The neckline of the pattern is at around 74.50, and if the price drops below this level, stop-losses of long positions will be hit, which might drag the AUDJPY cross further lower. The next target could be at 73.25. 

The full potential of this formation is circa 220 pips. Thus bears might push the Aussie to 72.30 to achieve the full price potential of the reversal pattern. This level also coincides with another horizontal support.

Alternatively, the AUDJPY cross needs to rise 75.30 to cancel the immediate bearish threat. If this occurs, we could see a quick rally to 76.20, and in this case, the head and shoulders formation would most likely be nullified. 
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