AUDJPY pais has been in a downtrend for over a week now.
But Daily chart shows this pair is in the up chennel, and currently touching the buttom of the channel.
As a Carry trade, I would like to look for the next Long opportunity with this pair.
I would like to assume the current price is going to make another Higher Low on the Daily chart.
As the entry, I would like to suggest the following 2 scenarios.
- Wait for Double Bottom (or Higher Low), then Higher High
If this happens, let’s buy from the next Higher Low.
- Break up of MPP/WPP
Or simply, wait for the break of MPP/WPP, and try to buy after the pullback.
Of course, I wouldn’t deny the possibility that the price will continue to go down. But if we stick to the above setups, we would not get into the trade if the price continues to go down.
I think that’s the beauty of “Trade Setup”, rather than passive trades.
YJ Baik – Forex.Today @ Tokyo