A Great Technical Pattern Facing Heavy Event Risk

For those that pay no mind to fundamentals, AUDJPY was making a classical technical move by retesting a former support (a six-and-a-half-year long trendline support) as new resistance. This is frequently a pattern that projects follow through on a new trend should that level hold. The probabilities looked good from a technical perspective, but for those following the fundamentals, the risk was exceptional with Chinese 2Q GDP deciding whether it is a follow through or false break/reversal outcome.