AUD/JPY: Following the Channel!
What’s up guys and welcome to my profile, my name is Gianni and today I’m going to analyse the AUD/JPY, translating the market information with a full technical analysis on different time frames.
For a better understanding of my market perspective, let’s have a quick look on the monthly timeframe:
After a strong bearish impulse performed during the last month, the market is now retesting a strong s/r level.
Few doji candles are a clue of strong demand on that area, so there is a possibility to see a new movement to the upside.
Switching to the weekly timeframe:
A huge uptrend followed by a retracement, reaching the support level at about 0.50%/0.618% of fibonacci, usually an area where price start consolidating before a trend continuation or a trend change.
The last bullish engulfing could be a sign that the market is changing its perspective from bearish to neutral.
On the daily timeframe:
The price is consolidating inside the fair value area, the most market activity is happening on the top of the value area, and focusing as well on the three rejections from the demand zone, you can see how the buyers are aggressively pushing the price back inside the area, all signs that the buyers are getting the control of the market.
Back to the 4 hours timeframe:
The market is moving following a clear uptrend!
Now let’s analyse more in detail:
The market is forming a falling wedge, testing now the dynamic support of the ascending channel.
I will be waiting for the breakout of this pattern before entering long on this trade, looking for a good entry point with a RRR of 1:2.
I would place my SL below the channel and the first TP at about the middle of the channel, the second TP on the dynamic resistance.
If you enjoy this trade idea, support my work with a thumb up and don’t forget to follow my profile for more detailed technical analyses!
Trade safe and responsibly,
Gianni
DISCLAIMER
Please note the views are not investment advice and should be used only for educational purpose
For a better understanding of my market perspective, let’s have a quick look on the monthly timeframe:
After a strong bearish impulse performed during the last month, the market is now retesting a strong s/r level.
Few doji candles are a clue of strong demand on that area, so there is a possibility to see a new movement to the upside.
Switching to the weekly timeframe:
A huge uptrend followed by a retracement, reaching the support level at about 0.50%/0.618% of fibonacci, usually an area where price start consolidating before a trend continuation or a trend change.
The last bullish engulfing could be a sign that the market is changing its perspective from bearish to neutral.
On the daily timeframe:
The price is consolidating inside the fair value area, the most market activity is happening on the top of the value area, and focusing as well on the three rejections from the demand zone, you can see how the buyers are aggressively pushing the price back inside the area, all signs that the buyers are getting the control of the market.
Back to the 4 hours timeframe:
Now let’s analyse more in detail:
I will be waiting for the breakout of this pattern before entering long on this trade, looking for a good entry point with a RRR of 1:2.
I would place my SL below the channel and the first TP at about the middle of the channel, the second TP on the dynamic resistance.
If you enjoy this trade idea, support my work with a thumb up and don’t forget to follow my profile for more detailed technical analyses!
Trade safe and responsibly,
Gianni
DISCLAIMER
Please note the views are not investment advice and should be used only for educational purpose
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