AUDJPY has been on a tough roller coaster ride. This ride made the pair bearish and since then, the pair has been up down the hill with its move. We are currently looking at the bearish side given the bearish structure and lower low and lower high formation. Market stands at the resistance level currently, and is apparently rejecting the resistance zone. This indicates a further move down. 

The ascending trendline has been broken out for sells ealier. Market has validated the breakout sell. After the move down, the retracement is occurring. After this down mark down, there is mark up which is retracement. Now, there is an ascending channel forming. The ascending trendline in the channel is getting vulnerable for another breakout sell, which will confirm the mark down. The position we will be taking. 

The golden retracement are of 75-78% is in confluence with resistance. This confluence is act as a strong foothold for our bearish position given we have other technical parameters aligned with the retracement and resistance. 

The EMA 50 has been broken out for buys on H1 but on the H4 it is retesting the resistance zone. This indicates, on the higher timeframe, the pattern is still bearish and for now, it seems imminent for another down run.

The RSI is at 53. This means, market needs to break below the 50 level towards the bearish level. This level if broken, we will have all the technical factors aligned for a possible down run.

Wonderful short position on AUDJPY

Jul 13 2022