AUDJPY Breakout but Support Ahead
We last posted on the AUDJPY on March 17th when we were waiting for 2 key support levels to be broken.
The first, the drawn-in pivot lows of March, have now been broken and confirmed as resistance. This would potentially offer a short entry into the trade but this is where we are applying patience and waiting for the next key support level, the round number 80, to be broken.
When placing a trade, we always look to what we are being offered in the form of reward to our risk in relation to support and resistance levels. If our criteria is not met, we stand aside. With 50 pips on offer to the round number 80, we will be standing aside.
Support and resistance levels get broken when price is in a trend and hence there is a high chance that price will break and close below 80. Once price dictates this, we will be offered a far healthier risk to reward to 70, a distance of 1000 pips. This is when we will look to strategically add compounds.
This is looking strong for a bear trend continuation but patience needed on this for now.
Any comments or questions, do not hesitate to leave them below. Hit agree if you share our sentiments!
Sublime Trading
The first, the drawn-in pivot lows of March, have now been broken and confirmed as resistance. This would potentially offer a short entry into the trade but this is where we are applying patience and waiting for the next key support level, the round number 80, to be broken.
When placing a trade, we always look to what we are being offered in the form of reward to our risk in relation to support and resistance levels. If our criteria is not met, we stand aside. With 50 pips on offer to the round number 80, we will be standing aside.
Support and resistance levels get broken when price is in a trend and hence there is a high chance that price will break and close below 80. Once price dictates this, we will be offered a far healthier risk to reward to 70, a distance of 1000 pips. This is when we will look to strategically add compounds.
This is looking strong for a bear trend continuation but patience needed on this for now.
Any comments or questions, do not hesitate to leave them below. Hit agree if you share our sentiments!
Sublime Trading