AUD/JPY Technical Analysis: Soft Australian retail sales highlights the importance of “Rising Wedge” formation

• AUD/JPY dropped beneath 79.10 past higher than expected contraction of Australian retail sales.
• The pair may now test the support line of immediate “Rising Wedge” bearish formation, around 78.90.

The AUD/JPY pair slipped under 79.10 after Australian retail sales contracted for the first time in a year. With the December month Australian Retail Sales undershooting the -0.1% market consensus to -0.4% on MoM, a month old “Rising Wedge” bearish formation becomes crucial for the AUD/JPY traders.

AUD/JPY: Four hourly chart

AUD/JPY’s present pullback may take a rest around 78.90 that comprises support-line of a month long bearish formation and the 61.8% Fibonacci retracement of its December 2018 downturn.

Should the pair refrains to respect the 78.90 pattern support, its theoretical plunge to 75.40 can take the first halt around 77.00. During the pair’s extended declines past-77.00, the 76.00 may offer intermediate rest to the prices ahead of highlighting the 75.40 and the 75.25 supports.

Meanwhile, the 79.60 and the 80.00 mark, also including pattern resistance line, can continue restricting the pair’s immediate advances.

Given the upside past-80.00, the 80.60-70 horizontal-region and the 81.00 may become buyers’ favourites.