I like the look of this potential short play on AUD/JPY.
on the weekly chart I can see a wick rejection of the 88.000 Key level - coinciding with the previous high.
Although this level has been broken on the daily, the bulls on this pair seem to be exhausted and this potential setup looks valid on the 4 hour chart.
Price is currently trading below the 50ema, and during the upcoming week I would like to see price continue short, breaking below the 4 hour ascending trend line alongside breaking and closing below the previous higher low level of 87.500. - If I witnessed this, I would then be looking for a valid retracment, this could be a rejection of an hourly fib. Or a retrace and rejection of the 88.000 level or even a retest and rejection of the 87.500 level (previous higher low).
I would then enter short if I saw an hourly bearish candlestick pattern form on either of these retracment levels with my targets set for 85.756!
on the weekly chart I can see a wick rejection of the 88.000 Key level - coinciding with the previous high.
Although this level has been broken on the daily, the bulls on this pair seem to be exhausted and this potential setup looks valid on the 4 hour chart.
Price is currently trading below the 50ema, and during the upcoming week I would like to see price continue short, breaking below the 4 hour ascending trend line alongside breaking and closing below the previous higher low level of 87.500. - If I witnessed this, I would then be looking for a valid retracment, this could be a rejection of an hourly fib. Or a retrace and rejection of the 88.000 level or even a retest and rejection of the 87.500 level (previous higher low).
I would then enter short if I saw an hourly bearish candlestick pattern form on either of these retracment levels with my targets set for 85.756!