AUDJPY Trading Setup

by: Colibri Trader

Dear traders,

The trading setup from last time has worked out amazingly well. Oil has made a small retracement back to 47.15 and then dropped down to 45.57, where it is currently trading. Currently, I am not seeing a reason why to take profit. Seems like a lot of sellers entered this trade and crude was down for almost 3% for the day. Now, I will possibly be looking for another opportunity to add to this trade. The ones amongst you who have taken my trading course should know what I mean. Since, this is a pure analysis and not a recommendation to buy/sell, I cannot really advise on more.

AUDJPY Trading Setup

Today’s trading setup is coming from an unconventional place- AUDJPY. I am seeing a rejection of a major resistance area. If you zoom in, you will see that this is a multi-week resistance area. If you change to a weekly chart, you will see that there is a pin bar that formed. This gives further significance to the position and the price action pattern from the daily timeframe. The daily timeframe is actually showing an evening-star pattern (if you want to refresh your candlestick patterns knowledge, check out my article HERE). If I decide to proceed with a trade, I will be looking how price is acting around the area of 88.40. A potential stop could be placed just above the heights of 89.50. I will be looking for price targets as follows: 1) 87.00 2) 85.00 3) 81.50. This is of course if price action is confirming the case for a further decline.

Happy Trading,

Colibri Trader

 

p.s.

Have you checked my previous article on Moving Averages?

If you want to learn more about my professional trading strategy, you can visit my dedicated page.

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