AUD/JPY: 4-hour
Careful, Aussie bears! AUD/JPY just formed a double bottom pattern on its 4-hour forex chart, indicating that the recent downtrend might already be over. Price has yet to break past the neckline resistance at the 92.00 major psychological level before confirming the potential reversal. If that happens, the pair could climb by an additional 250 pips, which is the same size as the chart formation. However, breaking past the neckline could be a bit of a challenge for Aussie bulls since this lines up with the 200 SMA, which has served as a dynamic inflection point in the past. In addition, the 100 SMA is below the 200 SMA while stochastic is reflecting overbought conditions, both suggesting that the downtrend could resume sooner or later.
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