There is a real danger of a major bearish rising wedge breakdown here on the daily chart we have been observing of the Aussie Dollar versus the traditional safe haven Japanese Yen. Obviously, the pattern is already cracking, but the issue is whether another significant leg lower is coming. In other words, the Aussie is still in an overall downtrend versus the Yen, and the recent rally may have just been countertrend blip.

To be sure, bulls of risk assets want to see the Aussie make a higher low here, preferably right at the convergence of those 20 and 50 day moving averages.

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