Nice idea on AUDJPY and there may be bearish potential as you have identified. The resistance that we have found is at 80.64, which falls just below the resistance zone that you have identified. It is a horizontal overlap resistance, with a 61.8% Fibonacci extension and 23.6% Fibonacci retracement. If a potential reversal happens after testing resistance, we may want to take a closer look at the 80.19 support level. It is a horizontal overlap support, with a 61.8% Fibonacci retracement. Looking forward to seeing how things develop.
Please have a look at our idea and we would like to hear what you think.
@ICmarkets, Thanks for the comment. I don't use fibonacci extensions so can't comment on that. I also only trade the daily chart. Looking at the weekly/ daily chart I don't see a major support level around the 80 level, so bias is still bearish. I will be looking for a convincing sell signal on the daily chart on a lower high around that resistance zone (I don't see any clearly defined level, just a zone)
@ICmarkets, Looking at the chart again, it could be forming a higher low at this level and therefore an inverted head and shoulders pattern will emerge which is a bullish sign. All in all I'm not in love with this chart so will probably not trade it unless something really convincing is printed on the daily.