On July 29th, I posted AUDJPY trade plan, as below.
Basically, this is “Double Bottom” plan on H4 chart. So I was looking for another Higher Low, then I would Long this. However, what has happened is… the price is not making any Lows. (See below)
You may wonder “OK, not making Lows. Support is rigid. Let’s Long from here”. This discussion makes a certain sense. But I would like to hold this trade yet, with 2 reasons.
1) The price went down yesterday. So Bears are waiting to sell.
2) Bearish Divergence on H4 chart
Also on H4 chart, 55EMA is in control. So I am expecting the price will drop further, and form either Triple Bottom or Higher Low.
Taking all the discussions into account, let’s be patient a bit more, until we see Higher-Low on either H1 or H4 chart.
YJ Baik – Forex.Today @ Tokyo