AUDJPY is popular for Carry trading.
I think your chance to add some more trades is coming.
This is Hourly chart. It was a down trend for a while, making series of Lower Lows and Lower Highs. Yesterday, however, the price made Higher High and broke 55 EMA. This suggests the price will make a Higher Low, or at least Double Bottom (meaning, not likely to form Lower Low), though Stochastic suggests the price is in down cycle now.
Therefore, if you buy this pair at the next Higher Low, it is better chance that you can move your stop to Even, and let it go.
As the most possible buy entry, I am assuming DPP (83.94) because this price is also Fib38.2% and (Role Reversal) support. However, if the price continues to go down, you should also look for Fib50% and 61.8% as buy entries.
Please make sure the Stochastic comes down to 25% and turn up, before the entry.
Hope this setup helps you build your own.
YJ Baik – Forex.Today @ Tokyo