AudJpy Short Setup

Bias
I personally am waiting in anticipation for Yen strength anytime from now. Even though we saw the Yen losing some ground the past few days, my sentiment remains the same, being a bear on all Yen pairs. By virtue of my bias, I’m simply looking for selling opportunities.

AudJpy Daily Chart

We had price open just above MM2 at 85.159 at the beginning of the month, which also coincides with a strong level of support. Being a bear,We also had a resistance psych level of 87.500 hold. Price then went on to break what was then an immediate support level of 85.000 which it is currently being tested as resistance. I'm hoping to see price fail to break to the upside of this level and go on to break through the 21 MA and then the immediate support level at MM2. By then Maybe the 55MA will hold as dynamic support.

AudJpy H4 Chart

Price finally broke the upside trend line drawn by joining the two highs from the previous week. This week price opened just below the weekly pivot point and already the weekly bull target has been achieved. Even though the market action MA's are not showing any market sentiment and the Stochastic is coming down from an overbought level, it would be ideal for me to see price retrace up to at least 85.15 for an entry.

AudJpy H1 Chart

Price is recently came off support after it broke through what was then a support level of 85.191. I'm looking forward to see it retrace back up to retest the level as resistance. The level lies within the Fib zone and also coincides with DM3

4 thoughts on “AudJpy Short Setup”

  1. Maryna says:

    Hey Tsholanang, this pair made a shooting star on the Monthly chart (see my post on Monday), but no sign of JPY strength yet. The shooting star is about 378pips and if it gets taken out it will negate my bearishness for now. The week started on a low price for the pair, so it makes sense for it to pull-back higher as it’s doing now and you can see the ‘indecision” candle on the Daily (a little hammer) that was formed at 83.744 support. Let’s see what happens as this can be a very good trade if and when it happens. Have a good trading day!

    1. I saw that (Aud Strength) prior to my post. But by virtue of my bias, there was a level/s where I wanted to see price at for possible short entries, at most the MM3. And again, I am still anticipating some yen strength. So it was purely based on what I stood for and at the end I bagged just above 90 pips from 3 entries comined – See more at: http://forex.today/audjpy-short-setup/#comment-25073

  2. I’m also long on this pair, also note on how the Aud is strengtening across the board. I agree with Maryna that there was a morning star formation on the monthly chart and therefore teh case for a long trade is strong. Good carry trade combination especially when you also add NZD longs here;)))

  3. I saw that (Aud Strength) prior to my post. But by virtue of my bias, there was a level/s where I wanted to see price at for possible short entries, at most the MM3. And again, I am still anticipating some yen strength. So it was purely based on what I stood for and at the end I bagged just above 90 pips from 3 entries comined.

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