AUDJPY remains within a triangle formation


The AUDJPY cross is usually a good barometer of the risk on/off trading in the financial markets and it has been stuck in a consolidation pattern for some weeks now. On Friday, the cross was seen ticking lower during the EU Session and was trading at around 73.60.

The resistance seems to be near the 74.00 level, where the upper bearish trend line of the triangle pattern is located. If this level is taken out, we could see a strong move toward 74.40, or possible toward 75.00, where previous swing highs are located. 

Moreover, an upside breakout from this triangle could imply risk-on trading going forward, which should be positive for equities.

On the other hand, the lower bound of the triangle is near 73.20 and if the price drops below this support, a stronger decline move might occur, target 72.00. Moreover, this could imply a bearish environment for stocks as well.
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