awais1989

AUDJPY short, forming a pole and flag within a channel

Short
FX:AUDJPY   Australian Dollar / Japanese Yen
AUDJPY is currently forming an overall long term pole and bull flag , pattern it is likely to break upwards in a pattern continuation at some point, however it is also in a downward channel trend (the flag). The price action could go either way. It could form a continuation upwards by breaking the flag pattern OR it could continue to form the flag for now.

However I think it is worth taking a short trade with a small risk reward ratio as I think the flag is still forming and the bullish continuation and likely to happen later.

If price action on 4hr chart closes above the flag, we are likely to see a continuation upwards.