Here is a simple short set up on AUDJPY.
Price seems to be making a lower high and rejecting the Fib 0.786 Retracement level. There has been a lot of price action at this level previously so there is potential for good liquidity to be located in this zone.
Decent R:R of over 5:1 if we target the previous lows and the 77.500 support region.
I would place my stop...
- 4hr showing rejections of Fib 0.786 region
- Higher lows
- AUD news based drop last night... technicals to continue the bullish move.
Move stop loss to breakeven when price moves 30 - 40pips in profit to remove exposure on this fairly aggressive trade.
Since the extremely large drop on the majority of FX pairs, AUDJPY has been climbing up in an ascending channel which is visible on the daily chart. Price has broken out to the downside and has come back up to retest the channel. Our entry is at the 0.618 retracement zone of the previous swing.
TARGETS ARE MARKED OUT ON THE CHART. PURPLE LINES ARE SHORT TERM...
As you can see the trend line structure has been broken and we can possibly see a small pullback before a leg to the downside based on my analysis i will be looking for a short position on this pair
The Breakout Opportunities system has just sold AUDJPY at 79.163. The system recommends entering this trade at any price between 78.978 and 79.313. The signal was issued because the AUDJPY has broken its 24-hour low while our Speculative Sentiment Index was at 1.564, suggesting that the AUDJPY may have further to fall. A stop loss has been set at the 24-hour high...
The Breakout Opportunities system has just sold AUDJPY at 79.163. The system recommends entering this trade at any price between 78.978 and 79.313. The signal was issued because the AUDJPY has broken its 24-hour low while our Speculative Sentiment Index was at 1.564, suggesting that the AUDJPY may have further to fall. A stop loss has been set at the 24-hour high...
This pair is the Australian Dollar against the Japanese Yen. In regards to U.S. equities on a short to medium term basis, it is often one of the most highly correlated pairs to price action. The pair tends to decline is a risk off approach and rise in a low risk environment on carry flows.
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