We can all confirm that until this week AUDJPY was making lower lows and lower highs. Then at the start of the week without a reversal pattern on H4 price moved higher. The fact that we have not printed a reversal pattern on H4 means price is coming back down to form one. I am looking for a right shoulder to complete the head and shoulder pattern and I am paying attention to two price levels as illustrated below. I uploaded this trade plan earlier this week before price had broken out to the upside, this is an update to that post.

AUDJPY Daily

Price opened in the buy zone for the month and is currently just below MM3. Look at that loaded stoch.

AUDJPY H4

I am paying attention to MPP and the green zone where the left shoulder appears. H4 is overbought though has not crossed over into the trade zone yet, 88.00/ MM3 is resistance.

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