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



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