AUDJPY Technical Breakout - Targeting 97.400 Next?TRADENATION:AUDJPY has recently broken decisively above a key resistance zone that had previously capped price for several months. This breakout was preceded by a period of compression and range-bound price action, where bullish momentum steadily built up, indicated by higher lows pressing against the resistance level. This type of structure typically leads to an explosive breakout, which we are now seeing unfold.
After the breakout, price came back for a clean retest of the broken resistance zone, which has now flipped into support. The retest held firmly, suggesting strong buyer interest at this level and confirming the validity of the breakout.
With this structure in place, the bullish momentum is likely to extend further toward the next target zone around 97.400, provided price remains above the current support.
As long as the price holds above the retested zone, the bullish outlook remains intact. A breakdown back below this area, however, would be a warning sign and could open the door to a deeper pullback.
Remember, always wait for confirmation before entering trades, and maintain disciplined risk management.
