AUD/JPY Technical Analysis: Triangle breakdown ahead of the RBA rate decision

A contracting triangle breakdown has put the AUD/JPY pair on the defensive ahead of the Reserve Bank of Australia's rate decision. 

The central bank is widely expected to keep rates unchanged at the record low of 1.5 percent and downgrade its growth and inflation forecasts. A vast majority of economists, however, expect the central bank to stick to the script - reiterate that the next move in rates could be on the higher side. 

The AUD, however, could be offered across the board, if the central bank sounds dovish by stating that rates could move on either side. 

Hourly chart

The triangle breakdown seen in the above chart indicates a bullish-to-bearish trend change. The pair, therefore, could soon explore levels below 79.00, especially if the RBA sounds dovish. 

The bearish outlook would be invalidated if the spot violates the bearish lower high with a move above 79.44. 

Trend: bearish