The market structure on AUDJPY had been bearish, till market snapped at the support price of 180.270 and is anticipated to bounce back. This bounce will be considered as a retracement move, which will be our buy position. We will keep the stop loss tight and profit small for this corrective move.

For the trendline structure, AUDJPY has formed a descending trendline, waiting to be either tapped or broken out for buys. Even if broken out, we have to confirm the structural change to bullish side before validating the breakout buy.

At the support level of price 180.27, we have a confluence of the golden retracement level of 75-78.6%. This retracement having a confluence on the support level highlights the strength of this region. This impulse wave would continue down towards the 0 retracement level.

Both the EMA 50 and EMA 200 are in a bearish sentiment, with a bearish death cross impending. After the breakout sells of the EMA 50, market was unable to retest at the EMA 50. At the resistance level, we anticipate a retest of the EMA 50 or EMA 200. This EMA 50 or EMA 200 will give AUDJPY the push required for our take profits for the buy side.

With the oscillators, both are in the over-sold region. The RSI is at the 30levels, whereas CCI is at -120. A bullish hidden divergence is being formed on the oscillators along with the price action diverging the prices. This factor adds to the confluence of our bullish position setup.

Temporary AUDJPY corrective buys

Dec 02 2021

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