AUDJPY has formed a decent setup aligned with the trend. We will evaluate it based on the H4 for swing and intraday.

- Market structure: Market structure on AUDJPY is bearish and market has been forming HL and LL. Market tried the resistance level at 81.20 and kept on rejecting the area. This devises more short pressure. The major factor in this market structure is that the market is already in a bearish trend.

- Trendline: We have two trendlines in the making. We have an ascending trendline which has been pierced for breakout sell. The other one is the resistance trendline which has been descending down. The market tested this trendline at the resistance which forms another confluence.

- Retracement: The golden retracement level of 75-78.6% remains in confluence with the resistance area. Market has already bounced down from this area and is continuing to run down. Retracement level has been tested twice and we will wait for the third test at which we will short the pair.

- EMA's: Both EMA’s are bearish. The EMA 50 is being tested the 3rd time. This EMA 50 is being tested at resistance which is an added factor for the shorts.

- RSI/CCI: Both RSI and CCI are in a bearish region. Also we see a trendline breakout sell on both the oscillators. These added confirmations validate our short trade setup. We will continue to hold our short targets till the oscillators reach the over-sold region below 25 and -150 respectively.

The AUDJPY is at a premium short setup. Such setups have a high probability of going in our favor. At this pair we have 4 confirmations of sells: resistance level, golden retracement region, trendline breakout sells, EMA 50 being tested and both oscillators depicting the bearish region. These analysis present the alignment with trend.

What a beautiful setup on AUDJPY

Jul 30 2021

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