Blake Morrow’s Chart of The Day – May 11th 2021
“False breakouts may lead to breakdowns” they say and the AUDJPY has potentially put in a false breakout above the 85.50 level today. In addition, the gravestone doji is not helping any bullish argument today. We have been following a slightly ascending channel recently which means that the pair could slip back to the 83.00 level and not be bearish. However, that is over 200 pips away. And with the daily RSI divergent, the risk is high for a move back down towards support. Near term support is the 50dma.