AUDJPY outlook

AUDJPY Daily chart:

AUDJPY has been on a long ride last month and has recently hit a resistance zone 86.986-87.507. A candlestick reversal pattern formed at this resistance zone indicating us to short this pair. We can observe an inside bar false break at 86.986, meaning that price consolidated within another bar, then broke the bar to the upside and reversed to the downside suddenly to false break the bar (red horizontal lines on below chart). This false break confirms that price is rejecting higher prices and is willing to get short.

Traders may look for trend continuation setups on lower time frame and target next support 84.615.

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