AUD/JPY Technical Analysis: Charting inverse head-and-shoulders pattern on the hourly

• Currently, the AUD/JPY is creating a right shoulder of the inverse head-and-shoulders pattern with the neckline resistance at 79.76.
• A break above the neckline would confirm a bearish-to-bullish trend change and would open up upside toward 81.00 (target as per the measured height method).
• A bull breakout may turn into a bull trap if the Chinese yuan continues to slide, triggering risk aversion and boosting haven demand for the JPY.

Hourly Chart

Spot Rate: 79.52

Daily High: 79.58

Daily Low: 79.25

Trend: Bullish above 79.76

Resistance

R1: 79.76 (neckline resistance)

R2: 80.00 (psychological hurdle)

R3: 80.28 (200-period EMA on 4-hour chart)

Support

S1: 79.10 (low of the previous 4-hour candle)

S2: 78.68 (Sept. 7 low)

S3: 78.56 (Oct. 26 low)