Good evening team,

 

With the DXY coming down from its high and equities appearing as though they are ready for a technical bounce, we are looking to execute a short term bullish trade on the AUDJPY.

The AUDJPY has set up another B wave triangle structure, which indicates there is going to be a final wave c corrective rally.

AUDJPY 4 Hour Chart

The recent rally higher is potentially an a-b-c corrective rally, as we can count an initial 5 wave decline. The AUDJPY is yet to finish off a final wave c corrective rally. Once this has completed we will be looking to potentially switch to a short position.

Trade Setup: Buy market execution, current price 94.40, stop loss 93.70 and take profit 96.24.

Stop loss: 70 pips

Take profit: 184 pips