#046: LONG AUD/JPY Investment Opportunity
The current structure of the AUD/JPY pair reflects a classic institutional pullback within a broader bullish environment. After a strong directional move, the price has entered a corrective phase that appears orderly rather than impulsive, suggesting a redistribution rather than a true trend reversal.
What is striking is the price behavior around the demand area. The market has already cleared liquidity, removing weak hands and breaching short-term stops. Since then, price action has slowed, showing hesitation and consolidation rather than a downward continuation. This is often a sign that professional traders are absorbing liquidity rather than closing positions.
From a macro perspective, the broader risk environment remains supported. The yen continues to serve as a funding currency, while the Australian dollar benefits from carry dynamics and relative strength during periods of risk appetite. This imbalance typically leads to shallow pullbacks, where the price doesn't always return to perfectly "clean" retail levels before resuming the primary move.
Volume trends reinforce this view. Selling pressure hasn't expanded during the retracement, and there's no evidence of aggressive distribution. Instead, the market appears to be transitioning from a corrective flow to a directional intent.
This type of structure often favors patience. Rather than chasing momentum, the idea is to allow the price to reach an area where institutional orders are more likely to stop, after the initial phase of manipulation. If execution occurs, the rationale is based on participation and intelligent money management, not emotional anticipation.
If the market continues to rise without filling the expected entry, this wouldn't invalidate the analysis. On the contrary, it would confirm strong directional conviction and aggressive participation by major players. In institutional trading, missed trades are a natural consequence of discipline, not a failure of analysis.
The focus remains on the quality of execution, not frequency. In environments like this, sticking to the plan and letting the market decide is often the most professional approach.
