AUDJPY is resting on the resistance level of the price 94.26. This level needs to be rejected in order for the market to make another bearish leg. This leg will be the impulse leg of the bearish move. We will wait for some sort of price action to be formed at the resistance area. For example, formation of engulfing or pinbar. 

The ascending trendline is on the verge breaking out for the sells. Once market breaks out, we will wait for the validation of the candles, which will induce the validity of the continuation.

The retracement level of 61.8% falls in line with the resistance level. These both levels coinciding with each other have a major impact on the short selling. 

The EMA 50 is retesting at the resistance level. The EMA 50 has given us an added confluence of the overall market plummet. 

RSI is at 60. This indicates the bullish region. We migt not get the chance for the oscillator to fall in to the over bought region. Therefore, we will wait for the RSI to decline from the 50 level.

We have a good setup on AUDJPY and a high probility of it to continue moving down. If market breaks the resistance upwards, we will take the loss and wait for another setup.

AUDJPY at a major resistance

Oct 19 2022

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