AUDJPY was in the uptrend for the last week. However, Buy season may have been ended.
Below is the Daily chart. The price was bounced back from the previous high (97.0 ish), touching 55 EMA while Stochastic is at 75%.
I would like to see the beginning of the down trend.
On Hourly chart (below), the price already started to drop, and Stochastic is already below 25%.
So it would make the perfect sense to sell from the next Lower High. As always, you can sell from Fib 38.2 – 61.8% level.
The stop should be a little above Fib71.8% (86.70 ish), and the target should be DM1-DS2 (which contains Fib138.2%).
If you are swing trading, your target can be MPP (84.30 ish).
Hope this setup helps you build your own.
YJ Baik – Forex.Today @ Tokyo