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Fan Yang

AUD/JPY Range-Bound Between Roughly 77.50 and 79.85 Awaiting Breakout

The $AUDJPY pair has been consolidating since late January between roughly 77.50 and 79.85. While the range looks very consistent, I think by now (the start of April), it might be better to wait for a breakout. 

AUD/JPY 4H Chart

(click to enlarge)

- The 4H chart shows AUD/JPY trading in the middle of a a 2-month range.
- I think if price comes up to the $79.80 area, we can fade it with a target of 78.80. If price is down around 77.60, we can go long with a target around 78.60.
- I would not target the other side of the range anymore because of the possibility of an impending breakout.
- Let's take a look at the daily chart.

AUD/JPY Daily Chart

(click to enlarge)

Anticipating Breakout:
- At the moment, if there is a bullish breakout above $79.85, I would limit the bullish outlook to 84.00. 
- A break below 77.50 might open up the 72.15 area, which is a common support going back to 2010. 
- Because there is a preceding bearish trend, I think it is more likely that AUD/JPY will eventually break lower. 

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