Look at the descending triangle that is developing on the hourly AUD/JPY chart!
The pair is currently attempting to overcome the resistance and may soon turn its attention back to the support at the important psychological level of 93.000.
Is there any remaining bearish momentum?
The 100 SMA is below the 200 SMA to confirm that the selloff will undoubtedly continue. As suggested by moving averages, this is a clear sign of bearish momentum.
A downtrend that is the same height as the chart pattern may even result from a break below the triangle bottom if there is persistent selling pressure.
Just be cautious because Stochastic is already showing oversold circumstances or seller exhaustion, so moving higher could signal a rebound to positive sentiment.
The AUD/JPY could bounce off the 100 SMA dynamic resistance at 94.00 and move back up to the triangle top at 94.50 if Aussie bulls are prepared to charge.
