Breakdown of the triangle ahead of the RBA rate decision

The breach of the contractual triangle put the AUD / JPY on the defensive before the ruling on the Reserve Bank of Australia's rates.

The central bank is generally expected to keep rates at a record 1.5% and lower its growth and inflation forecasts. A vast majority of economists, however, expect the central bank to stick to the scenario, recalling that the next rate change could be higher.

The Australian dollar could, however, be offered at all levels, if the central bank seemed accommodating by stating that rates could fluctuate on one side or the other.

Time Graph

The triangle division shown in the graph above indicates a bullish to bearish trend change. The pair could therefore soon explore levels below 79.00, especially if the RBA looks dovish.

The bearish outlook would be invalidated if the spot violated the highest bearish with a move above 79.44.

Trend: bear