AUDJPY is forming a bearish structure on H4. The formation consists of LH’s and LL’s. After continuous formation of the bearish structure, market now stands at the resistance level. It is to be noted that the current resistance- earlier treated as support- was breached by the market and is now standing at this strong resistance level. The strength of the resistance can be determined by the fact that its only been tested once after the breakout for sells. We will short the AUDJPY at this resistance level and ride the bearish impulse till the support.

There was an ascending trendline, which was breached earlier. After the breakout sells of the trendline, market has confirmed and validated the breakout. Apart from this, the support level was also breached, hence confirming the breakout.

The 75-78.6% retracement level is in confluence with the resistance level. The price of the retracement level is 80.90. Market may wick till this level and then continue moving down. Even if the resistance level is breached, we should be vary of the fact that the strong retracement level stands there.

EMA 50 has been breached for the bullish side where as, EMA 200 is residing at the resistance level in confluence with other factors. Prices are retesting this current resistance level and tapped the EMA 200. Therefore, another confluence added to our trading plan implies a strong technical point for shorts.

RSI is at 54 level, which is a bullish region. CCI is at 100, which is also a bullsih region. Being in an over bought region, we need to wait for the market to take the pullback/ retracement, in order for the oscillators to neutralize themselves. At the area of our short position, we can easily see what the oscillators would be showing at that time in order to go long. Either the oscillators will be in the bearish region or, they will be in an over bought area.

AUDJPY shorts forming

Oct 03 2021

Stop Loss -0.59%

Holding time 1d8hr

80.850

Entry price

81.326

Stop loss price

1