AUDJPY has been in a bearish trend overall, on the higher time frames. The H4 has been depicting a short term corrective move and has a potential to continue trend once it taps the potential resistance of 94. Market is still ranging in the current scenario. It should be noted that, market has formed tripple top and has the potential to tap the resistance which has been drawn. This resistance, is also a stop hunt zone where all the sell orders from the tripple top have placed their stop losses at. Therefore, once the stop hunts have been triggered, we will take our short positions.

Currently, there is only one ascending trendline formed, which has been broken out for sells inducing pressure for bearish breakout sell. Candles have validated the price action after opening and closing below the trendline. 

The golden retracement area of 75-78.6% is in perfect confluence with the resistance level, which we have identifies as a stop hunt. This level is going to act as a wick area and continue pushing down.

EMA 50 is bearish and EMA 200 is bullish. The death cross remains bullish and is on the verge of cross sectioning at the cross over of turning into a bearish death cross. 

Both the oscillators are in a bearish region, at over extended sells. RSI is at 25 and CCI is at -210.  At this level, it becomes really risky to short the market. Therefore, we will wait for the market to neutralize itself at the 50 and 0 levels where the market will give us another short opportunity. 

AUDJPY shorts from 94

Vasl Capital

Jun 13 2022