Good afternoon team,
Markets are looking very fragile at their current levels with a sharp downturn on Friday night. All JPY pairs look set for a continuation to the downside and the AUD could see the largest move as it is a risk on currency. Therefore during a time of “risk-off”, the AUDJPY should be vulnerable to a deeper correction.
AUDJPY – Weekly Chart
There has been a technical breakdown from a rising trend line support. The weekly candle has also set up a doji formation along with a retest of the broken trend line.
AUDJPY 4 Hour Chart
There are two possible head and shoulders setting up on the AUDJPY. The 82.50 resistance is our bearish invalidation level. We will be using this as our SL zone.
Trade Setup 1) SELL market execution, current price 80.87, stop loss 82.42 and take profit 77.92-77.00
Stop loss: 155 pips
Take profit: 295 pips – 387 pips
Trade Setup 2) SELL LIMIT – entry price 81.50, stop loss 82.42 and take profit 77.92-77.00
Stop loss: 92 pips
Take profit: 358-450 pips