AUDJPY is range bound currently hovering between the support and resistance areas. Once market taps the resistance level another time, we will take the short position from the price point of 94.70. Market has formed a lower low and is not in the space of creating a lower high once this level is rejected. Therefore a good short setup stands at the resistance level.

The ascending trendline has induced breakout sells with price action validation. After that breakout sell, usually the market retraces back. Now, market is at the resistance level and another ascending trendline is in formation. Once this is broken out for sells, we will have a confirmation for the sells. 

The retracement area where we sells are in the region of 78.6% level of the retracement. This resistance level and retracement level are in confluence with each other. 

EMA 50 is flat right now which indicates not a strong move on the either side. This EMA 50 might break out for sells once market moves passed by them. 

RSI is at 49. This region is already a bearish region. In this region we see a sliding down of the market towards the over sold area. If market moves back towards our region of short positions, we might see a bearish divergence forming at the over bought region for this purpose.

AUDJPY shorts from resistance

Aug 24 2022

Stop Loss -0.60%

Holding time 15hr

94.615

Entry price

95.184

Stop loss price