Price is clearly rejected at the daily resistance and expect it to make another downside from here. According to some fundamental factors, the current worldwide recession could make JPY become stronger and stronger. From the daily perspective, AUDJPY has created an overextended W formation, after W formation, price normally will pullback to the neckline of the W, so the neckline of the W (a.k.a previous resistance turn support) can be the first target before the massive push to the downside.
From the COT perspective, hedge fund seems like started bullish on JPY since the net positions increase, the number of long increases and short closing and AUD become more bearish for hedge fund.
It is best for us to monitor the price action in the 4h time-frame inside the recent structure area if there has shown any confirmation inside this area, then we can take a sell position with a good risk-reward.
Remember, always reacting to the market instead of predicting the market, this analysis is based on technical and COT perspective.
Comment down below and let me know your thought.
From the COT perspective, hedge fund seems like started bullish on JPY since the net positions increase, the number of long increases and short closing and AUD become more bearish for hedge fund.
It is best for us to monitor the price action in the 4h time-frame inside the recent structure area if there has shown any confirmation inside this area, then we can take a sell position with a good risk-reward.
Remember, always reacting to the market instead of predicting the market, this analysis is based on technical and COT perspective.
Comment down below and let me know your thought.