This may be a good news for Carry Traders with AUDJPY.
After the long sell-off, finally I see the reversal price action on H4 chart.
As you can see above, the price dropped dramatically since Aug, by making series of Lower Low & Lower High. However, recently the price made Higher High, Higher Low.
The aggressive trades must have took shots to go Long. After that, the price made another Higher High. Here is the chance to go Long for conservative traders at the next Higher Low.
Since I see Bearish divergence on the Stochastic, the price may drop a little deep to form Higher Low. Fortunately there is WPP at 83.870. That spot could be a great buy zone.
Please note that if the price goes below 83.30 (Previous Higher Low), then this setup is no longer valid.
Hope this helps you develop your own trade plan.
YJ Baik – Forex.Today @ Tokyo