AUD/JPY chart and commentary from a Société Générale weekly note
AUD/JPY confirmed a bullish reversal after breaking above a multi-year down-sloping channel last year. After facing an interim hurdle near the January 2014 levels of 88.50/89.00, it has witnessed a pause. Last month, it formed a bullish engulfing encompassing the price action of the previous six months. This suggests a resumption of the up move. It also appears to be unfolding an inverse head-and-shoulders pattern and looks poised to head towards the neckline at 88.50/89.00. A move above should mean an extended up move towards the weekly channel upper limit near 92.80.
