We are looking to short AUDJPY at the resistance level of 89.40. Market is heading towards the resistance level and has the potential to make a bearish move from the given resistance. Although market is still in a bearish trend unless this resistance is breached, market has to continue moving down if not broken the resistance level.

Two trendlines are in formation. One is the descending trendline and the other is the ascending trendline. Market may tap the descending trendline at the resistance level and the breach the ascending trendline as a breakout sell.

The retracement level of 78% is slightly above the resistance level and the market has the capacity to wick it up there as a cause of stop hunt levels.

EMA 50 is still bearish and the market may tap the resistance level in confluence with the EMA 50 retest. This will give us an added confirmation for the market.

RSI is at 14. It needs to head over towards the over bought region and form a bearish divergence, in lieu of the price action on the charts.

AUDJPY shorts from resistance

Mar 21 2023