The pair has formed a Pennant Pattern. A Pennant is a continuous pattern. It's like a small symmetric pattern with 3 touches or a weekly pattern; a breakout is usually in the previous trend. A failure in pattern has a very steep move which has given more return than actual breakout.

In the current scenario the pair was trading in an uptrend a small retracement is seen on the downside a breakout is expected on the upside which is the origin trend of the pair. Trend closing above the 10 day EMA would be a confirmation to the trend.

RSI is forming a symmetric breakout on the either side with price following the breakout would be a strong confirmation.

A shortfall is seen in the formation; a breakout is expected to be on the upside.

Advice : Trade as per breakout. ( Expected breakout Upside )

AUD/JPY

Jul 10 2022