Hey traders, i'm back! I do have plenty of open positions from last and early trading week but since they are all secured (my SL is in profit) I have enough margin to find another trade idea to enter. I have been looking at the YEN and it looks to me as if the JPY will be gaining strong across the board (aside from GBPJPY, which seems to be heading higher, perhaps I see this because I still expect the GBP to gain till the end of the year and maybe beyond).
I have recently set a sell pending order on AUDJPY, currently price action is about 30 pips away from current price action, I am not trying to be greedy here as I want a clear confirmation of a downside before I enter this trade to be established.
In this quick report I will go over the daily and the 4-hour chart as usual. Lets begin with the 4-Hour.
4-Hour AUDJPY chart
(Click to enlarge image)
The most important factors the 4-hour chart paints is 1. the 3 lower highs, which normally suggests bearish pressure and 2. the key consolidation area which has acted as both a support and resistance in the near past. This level MUST be broken before this sell can reach it's TP area, I am very confidant that if the key consolidation area is broken then the chances of the TP area begin reached become 90%+.
In regards to the yellow trend line just ignore it until we come to the daily chart.
The EMA & DC have recently been broken and show some upside potential but I think that will be limited as it was on 3rd & 4th of October where price only breached the DC & EMA for 3 days before tumbling down, a similar scenario could occur this time around.
Let's go over the daily chart.
Daily AUDJPY Chart
(click to enlarge image)
The daily chart however just shows me downside, aside from that key consolidation area which has clearly been an area of intense interest for both buyers and sellers creating a powerful resistance but not so much a support.
Price action is right now is testing the 30 day EMA (acting as a resistance at the moment), the breakout to the downside was confirmed on the 4th of October and I surely believe price will stay to the downside as the bottom yellow trendline should be tested one more time (at least) before anything big happens here.
Now for the trade details. My sell pending order will get triggered at price 87.596, once triggered my SL is set at 88.048 and my TP is at 86.121.
Once my trade moves 30 pips at least in profit I will then move my SL to breakeven and turn it into a trailing stop loss.
Thats it folks! Any questions or suggestions are very very welcome!