AUJPY broke up the descending channel . It has formed a short term uptrend. In order to buy I am waiting a break - retest of the resistance with a TP level close to the most recent solid resistance I spotted.
Otherwise, if it breaks the current support zoen and retest it pointing down I will go vice versa.
In general BoJ is more dovish while BoA is more aggressive in financial policies.
This makes the AUD more attractive for faster profit comparing to Yen and this might drive to further push to the upside cause the pair is mainly bullish over the last months.
Everything lays to the Break of structure mindset, just observations of where the price has/has no power to surpass and how can this action be depicted with big/ small body candles, wicks, velocity of price action etc. Some retracements are weak and the reversal is easy to be spotted. Other retracements are strong and many traders, included me, can be confused if the break & retest is not valid but in fact the setup might be proven right in the end (despite tight SL which is considered a wrong placed exit point.). It depends on what is the lot size, risk management, in which way someone wants to press him/herself, how much can afford to loose etc.
News can whipsaw and create momentarily fakeouts and push to SL hits and drawdowns. The same applies with big players' games behind the closed doors during weekends. That's why I avoid to put tight SL because it is quite predictable and it is seen by brokers, banks etc.
The above, make me avoid trading on Mondays and after 16:00 on Fridays.
Hope that I help a bit!
Goodl luck!
Otherwise, if it breaks the current support zoen and retest it pointing down I will go vice versa.
In general BoJ is more dovish while BoA is more aggressive in financial policies.
This makes the AUD more attractive for faster profit comparing to Yen and this might drive to further push to the upside cause the pair is mainly bullish over the last months.
Everything lays to the Break of structure mindset, just observations of where the price has/has no power to surpass and how can this action be depicted with big/ small body candles, wicks, velocity of price action etc. Some retracements are weak and the reversal is easy to be spotted. Other retracements are strong and many traders, included me, can be confused if the break & retest is not valid but in fact the setup might be proven right in the end (despite tight SL which is considered a wrong placed exit point.). It depends on what is the lot size, risk management, in which way someone wants to press him/herself, how much can afford to loose etc.
News can whipsaw and create momentarily fakeouts and push to SL hits and drawdowns. The same applies with big players' games behind the closed doors during weekends. That's why I avoid to put tight SL because it is quite predictable and it is seen by brokers, banks etc.
The above, make me avoid trading on Mondays and after 16:00 on Fridays.
Hope that I help a bit!
Goodl luck!