UPDATED POSITION – 21st January
There has just been a breakdown from the rising wedge corrective rally, this should now result in a move to the downside. Looking across all USD pairs, the market sentiment favours the DXY which indicates a risk off move in the market. This should also result in a weaker AUDJPY so we are looking to build a second position from the recent peak.
Trade setup 2: SELL market execution, current price 82.69, stop loss 83.20 and take profit 79.82
Stop loss: 51 pips
Take Profit: 287 pips
Good afternoon team,
Slightly kicking myself for closing the AUDJPY, I would rather take a breakeven position than a loss. However, based on the technical setups on US indices and the JPY strengthening across the board, I am looking to reload on the AUDJPY as the setup is still very much valid.
Firstly, I want to take a look at the SP500 as the AUDJPY tends to follow the US market fairly closely. Please check the fundamentals in telegram for the latest information.
SP500 Daily Chart
Bearish divergence on the RSI and the SP500 is breaking down from the rising channel structure, similar to the NASDAQ. This indicates a change in trend in the short term and bearish pressure should come into the market.
AUDJPY Daily Chart
Trade Setup: SELL market execution, current price 82.22, stop loss 82.99 and take profit target 79.82
Stop loss: 77 pips
Take profit: 240 pips