I posted AUDJPY Long setup yeseterday.
The price went up nicely. Thus let’s look for the next buy zone.
The basic idea behind this trade is
- Daily Ichimoku Cloud is supporting the price
- There is a up-channel on Daily chart, and currently at the bottom of the channel.
Stochastic also looks good. So if you get into the trade, you could swing trade (or Carry trade) with this pair. The target for Swing trade can be MR1 (90.37) as Pivot theory tells us MS1 -> MR1.
Or you could swing up to the top of the channel, which is MR2 (91.80).
For the entry, let’s look at Hourly chart.
Currently Stochastic is in overbought zone. Also the price is hitting DR2. So I am expecting the price will drop.
(You may be able to scalp short at London Open… down to our Buy zone)
As usual, our next buy zone will be Fib38.2-61.8%.
a) Fib 38.2 + WPP (87.30)
b) Fib 50 (87.10)
c) Fib 61.8 + DPP + Psycho level (87.00)
Please make sure Stochastic will be down to 50% level, before you buy.
Hope this setup helps you build your own.
YJ Baik – Forex.Today @ Tokyo