AUDJPY is bearish in trend, with the formation of lower low and lower high structure. Market has broken the support and is retesting at the level which it has formed as a resistance level. From this resistance level, we will see the market moving down towards the second support as the traffic to the left hand side is clear. The price point of the shorts is 90.70.

The descending trendline is steep and will most probably be retested at the resistance level. This retest will enhance our chances for the market to continue moving down. 

The retracement level of 78.6% is in slightly below the resistance level. This will be the area of reference from where the market has to continue moving down.

EMA 50 is bearish with the steep curve downwards. This might not be retested at the resistance we are looking to go short from. Therefore, this setup will filter the EMA 50.

RSI is at 34. Most probably, RSI will head to the 50 level, where the price action will be at the resistance level. It will form a confluence of technical parameters and the RSI 50 from where it should continue moving down.

AUDJPY shorts from retracement level

Mar 09 2023