AUD/JPY’s Chartpack - Technicals & Trade Setup
AUD/JPY’s steep slumps on spinning top, major trend still stuck between 38.2% and 23.6% Fibos of 2014 highs and 2016 lows:
Back in last April 2018 (on April 11thto be precise) and again in the recent past (on July 30th), we kept reiterating the bearish potential of this pair quite often even when bulls superficially showed some upswings.
Dear readers, the thumb rule so as to make our trades successful is that, never forget “trend is your friend”.
You can, now, observe AUDJPY’ssteep slumps below DMAs after the formation of spinning top pattern, for now,more slumps seem to be likely upon bearish DMA and MACD crossovers and intensified bearish momentum as both RSI and stochastic curves show downward convergence to the prevailing slumps (refer daily chart).
While the major trend is stuck between 38.2% and 23.6% Fibonacci retracement levels, back-to-back gravestone doji and shooting star have occurred in the recent months that evidence failure swings 21-EMAs, Engulfing pattern drags price slumps below 7EMAs, Both RSI & stochastics signal bearish momentum (refer monthly chart).
Trade tips: On trading grounds, at spot reference: 81.295 levels, one touch put options are advocated for targets upto 81.180.
Alternatively, on hedging grounds, we advocate shorting futures contracts of mid-month tenors as the underlying spot FX likely to target southwards 80.500 levels in the medium run.
Writers in a futures contract are expected to maintain margins in order to open and maintain a short futures position.
Currency Strength Index: FxWirePro's hourly AUD spot index is inching towards -177 levels (which is highly bearish), while hourly JPY spot index was at 171 (bullish) while articulating (at 05:26 GMT).
Back in last April 2018 (on April 11thto be precise) and again in the recent past (on July 30th), we kept reiterating the bearish potential of this pair quite often even when bulls superficially showed some upswings.
Dear readers, the thumb rule so as to make our trades successful is that, never forget “trend is your friend”.
You can, now, observe AUDJPY’ssteep slumps below DMAs after the formation of spinning top pattern, for now,more slumps seem to be likely upon bearish DMA and MACD crossovers and intensified bearish momentum as both RSI and stochastic curves show downward convergence to the prevailing slumps (refer daily chart).
While the major trend is stuck between 38.2% and 23.6% Fibonacci retracement levels, back-to-back gravestone doji and shooting star have occurred in the recent months that evidence failure swings 21-EMAs, Engulfing pattern drags price slumps below 7EMAs, Both RSI & stochastics signal bearish momentum (refer monthly chart).
Trade tips: On trading grounds, at spot reference: 81.295 levels, one touch put options are advocated for targets upto 81.180.
Alternatively, on hedging grounds, we advocate shorting futures contracts of mid-month tenors as the underlying spot FX likely to target southwards 80.500 levels in the medium run.
Writers in a futures contract are expected to maintain margins in order to open and maintain a short futures position.
Currency Strength Index: FxWirePro's hourly AUD spot index is inching towards -177 levels (which is highly bearish), while hourly JPY spot index was at 171 (bullish) while articulating (at 05:26 GMT).