The Australian Dollar has declined massively against the Japanese Yen after the currency pair reversed from the upper boundary of a three-week descending channel pattern at 82.50 on October 2.
The exchange rate was trading near the upper border of the channel pattern at 79.76 during the morning hours of Wednesday’s trading session. From a theoretical point of view, a breakout could be expected within this session.
If this breakout occurs, the currency exchange rate will target a resistance cluster formed by the 200-hour simple moving average and the weekly R1 near the 80.61 regions.
However, technical indicators on the daily and the weekly time frames suggest that a reversal south is likely to occur during the following trading session.
