AUDJPY broke out of its symmetrical triangle to signal that a rally of the same height as the formation is in the works. However, price retreated from the 91.81 resistance and is in the middle of a pullback.

The Fibonacci retracement tool shows where buyers might hop in and allow the uptrend to resume. The 38.2% level is near the 91.00 major psychological mark while the 50% Fib lines up the dynamic support at the moving averages. The 61.8% level is at 90.65 and might be the line in the sand for a pullback.

The 100 SMA is below the 200 SMA for now, but the gap between the moving averages is narrowing to signal a potential bullish crossover. If that happens, more buyers could hop in and sustain the rally that might last roughly 300 pips.

However, stochastic is still heading lower to suggest that sellers have the upper hand and could continue to stay in control until oversold conditions are met. RSI is also heading south, so price could follow suit while bearish pressure is in play.

AUDJPY is edging lower on account of another downbeat Australian jobs figure, as the economy lost 4.3K jobs in April instead of gaining the estimated 24.8K positions. Earlier on, the quarterly wage price index also missed estimates and hinted of slower inflationary pressures down the line.

Still, risk appetite stemming from a few positive updates regarding the US debt ceiling was enough to lift higher-yielding assets earlier on. Another round of developments in the next few days could mean more upside for AUDJPY, especially if the US manages to avoid a government default.

On the other hand, a return in risk aversion stemming from the lack of progress until the deadline draws near could mean downside for AUD.