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AUD/JPY passes first test after bullish breakout

The AUD/JPY was in a bullish breakout to start the week

AUD/JPY 1H Chart 8/10

(click to enlarge)

Breakout and pullback:
- The 1H chart shows that price broke a falling trendline to start the week but stalled after tagging 78.60.
- Price retreated during the 8/9 session. 
- As we get ready for the 8/10 US session, we can see that the Asian and European markets so far supported AUD/JPY above 77.80, and has pushed price back up.
- The pullback essentially showed that the market respects the bullish breakout - In yesterday's look, I talked about 77.50 as a critical support for confirming the bullish breakout. 

Bullish confirmations:
- Price stayed above the critical support of 77.50.
- As we can see on the 1H chart, price rallied at the start of the 8/10 session and broke the consolidation pattern made in the previous session.
- Price is staying above the 50-, 100, and 200-hour simple moving averages (SMAs), which is a sign that AUD/JPY is turning bullish.
- The 1H RSI held above 40 after just a brief crack. This shows the market adding onto the bullish momentum developed earlier in August. 

Bullish targets:
- I think the aggressive target right now would be the July highs in the 81.50-81.60 area. 
- Price has held under this area since breaking below it in early May. It represents a sideways consolidation resistance for the medium-term.
- Before that, the first target is a support/resistance pivot around 79.00.
- The 80.00 psychological handle might also offer some resistance.