AUDJPY looks decent at the current level to go for longs. The market structure is already bullish forming HH's and HL's. This being the case, market is ranging in a resistance level. It was unable to reject this level and is forming bullish pinbars and candles. This structure is actually challenging to trade given the fact we may get a rejection too. But given the outlook of the market structure, we will risk for the bullish position. 

It should be noted that resistance has not been breached yet. 

The ascending trendline has also been tested at the resistance level, doubling the confirmation along with the market structure. Candles rejected the trendline at the resistance.

AUDJPY is ranging within the EMA's with EMA 50 being bullish and EMA 200 being bearish. Market broke the EMA 50, and is now looking to retest it. Thats only a probability whether or not it will retest the EMA 50 or not. On the other hand, EMA 200 could be our potential profit target. We anticipate that AUDJPY may breach the EMA 200 to continue up. 

Both oscillators are in the bullish region and happen to have room for the over-bought area. This gives us an additional confirmation for the long position at the current level.

The fact that AUDJPY is at the resistance level makes it inherently risky for the trade. If executed, we should be be aware of the potential drawdown and even being stopped out. We don't have a valid retracement parameter in this setup to support our trading plan. Therefore, this risk on this trade should not be more than 1-2%.

AUDJPY buys from 80.12

Aug 30 2021

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