AUDJPY has been in an uptrend and recently faked out from the resistance. Now, its back below the resistance and is retesting it. Now, previous low is being retested and price action is being created in a bullish pinbar. Once it starts moving, we will be targeting the next support. This means, market will move below the previous low making another bearish leg.

The ascending trendline has been broken out for sells. The price action has been validated for shorts, therefore, we have another confirmation for the shorts.

The fibonacci retracement which is in confluence with the resistance level is at 50%. This means, this confluence will act as a strong hold for the bearish move.

The EMA 50 is in a bullish trend. The market has the potential to retest the EMA 50 and therefore we can mark this as a profit target. Other than this, we do not have anything else on the moving average.

RSI is 48 which means, its in a bearish region. For a retest, we can wait for the market to tap back at the neutralized level of 50. Once this happens, we can have another confirmation with confluence for the short bias.

AUDJPY shorting from resistance retest

Aug 31 2022