ForexL AUD/JPY still forming “pennant” pattern on daily chart

FXstreet.com (Barcelona) - The AUD/JPY closed the session up 48 pips at 101.20. The pair again found buyers just below the 101.50 for a third day in a row. The pair is currently edging slightly lower in Asia trade at 100.90, with not much reaction after both China PMI (50.6 Actual vs. 50.8 Estimate) and Australia HIA New Home Sales (+4.2% actual vs. -5.3% prior) were released earlier in the session.

From a technical perspective, the “pennant” continuation pattern that continues to form on daily chart is important to keep an eye on. Although it doesn’t span over a huge period of time (started April 15th), the pattern does span a decent prince range (about 400 pips) and when resolved could help lead to a very big move. Being it is a continuation pattern; the pennant should resolve itself in direction of the underlying trend (or in this case, higher). Keep an eye on the upper boundary (102.50) and the lower boundary (99.90).