Daily Ichimoku chart of AUDJPY is very interesting. So I have to share my trade plan.
The 2 candles in Daily chart are red, and now touching the top of the cloud.
And I am hoping the cloud will serve as Support.
On a regular Daily chart, the current price is touching the Role-Reversal Support area, and also touching the bottom of the up channel.
Stochastic? Just crossed and ready to go up!!
I am also a carry trader. So I must consider to buy this pair!! You need one more push?
Here it is.
Below is H4 chart. The price made a Lower Low (a), and made Lower High (2). But this Lower High actually broke 55EMA. So I am not sure if the down trend continues…
Typically a touch of 55EMA predicts Double Bottom or Higher Low. So even this time, it might make Higher Low, and eventually turn up to north??
Stochastic also doesn’t disagree with me – it is below 25% though not yet crossed up.
Only the issue is “Trigger”. Typically I use the Price Action on M15 for the trigger. But because of Kuroda Bazooka today, it doesn’t work well.
(What I mean is… if I say “Wait for Higher High on M15, that would be 80 pips away from the current price!!!!!!)
Thus today, I would like to suggest 5/8 cross (5EMA – Brown line & 8 SMA – Black line) on Hourly chart for the entry.
It is a bit risky. But remember if the price continues to go down, most likely we don’t see 5/8 cross.
Also please remember if the price breaks the bottom (86.60), then forget about this whole setup, because this setup is based on the assumption that the price will make Double Bottom or Higher Low.
Let’s see if we can add one more Long position today.
YJ Baik – Forex.Today @ Tokyo