USD/JPY attempting to complete bullish breakout
IN_USDJPY has managed to break up above the crucial ¥140.32 resistance level once more, following the continued respect of trendline support. Should price manage to break away from this area, we would essentially break out of a downtrend which has been in place throughout the whole of 2016 thus far.
As such, watch out for potential further upside, with ¥104.87 the next key resistance level. Should we see this uptrend continue, then it would have longer-term bullish implications for the pair.
Will AUD/USD rally from Fib support?
AUD/USD has sold off sharply, helped on its way by a weak Chinese industrial production figure overnight. Price has since dropped into the 76.4% retracement and is showing some signs of strength.
The wider picture is convoluted, with last week’s break above $0.7710 providing a bullish outlook, whereas this week’s failure to retake that level provides a more mixed picture. Given the current deep retracement, it seems like a reasonable idea to look for longs, or at least look for shorter intraday bullish reversal signs to support that theory.
The wider picture portrays a market which could be on the cusp of a wider break higher from this multi-month symmetrical triangle and as such, it seems reasonable we would stop tumbling into trendline support.