AUDJPY Chart Technical Outlook on Tuesday morning will set the tone there was high volatility in the cross last week with spikes seen on all 5 days. We are seeing some mild positive sentiment this morning after a recovery in European indices (risk-on).
From a technical perspective, it is unclear if we have started the CD leg lower in a cypher pattern known as a Crab. This formation will complete at 89.30.
We have the Japanese Gross Domestic Product (GDP) data released early Tuesday morning closely followed by the Reserve Bank of Australia (RBA) meeting minutes. This should give us a clear indication of the next path for the cross.
Trading close to the 88.6% pullback level of 95.49 at the time of release would offer a solid risk/reward set up to the downside.
