AUD/JPY price support at 78.6% Fibonacci
Hello Fellow Trader!
AUD/JPY supporting price with multiple signals suggesting a short-term bounce.
RSI divergence in the oversold territory clusters with 78.6% Fibonacci and a drop in volume.
Key Points:
- 1 Hour – Outside lower Bollinger Band
- 1 Hour – Below RSI oversold
- Price holding below the 200 EMA
- Price holding below the 50 EMA
- Fibonacci 78.6% retracement (October Low – October 19th high)
- RSI divergency in oversold territory
Key Levels:
Support - 74.450
Resistance – 50 EMA, 200 EMA, 74.700, 74.930
Entry Zone:
Optimal entry provides the greatest reward to risk ratio while supporting entry is a zone for reversal signals.
Optimal Entry – 74.470
Supporting Entry – 74.500
Candle Reversals for entry
- Bullish Hammer
- Bullish Engulfing
- Bullish Piercing
The Risk:
As traders, it is your job to mitigate the risk and only trade structures that provide high probability and great reward to risk ratios.
If you are not comfortable with defined exit levels, experiment with Moving Averages to help set solid exit rules to protect your capital.
IF: Price breaks below 74.355 – this would suggest the structure is not in our favour and would be wise to reduce exposure or close the trade until a solid signal gives us reasons to re-enter.
Reward / Reward Targets:
Optimal Entry 74.470– Target 1 74.700 = 2x Reward to Risk
Optimal Entry 74.470 – Target 2 74.930 = 4x Reward to Risk
Supporting Entry 74.500 – Target 1 74.700= 1.7x Reward to Risk
Supporting Entry 74.500 – Target 2 74.930 = 3x Reward to Risk
AUD/JPY supporting price with multiple signals suggesting a short-term bounce.
RSI divergence in the oversold territory clusters with 78.6% Fibonacci and a drop in volume.
Key Points:
- 1 Hour – Outside lower Bollinger Band
- 1 Hour – Below RSI oversold
- Price holding below the 200 EMA
- Price holding below the 50 EMA
- Fibonacci 78.6% retracement (October Low – October 19th high)
- RSI divergency in oversold territory
Key Levels:
Support - 74.450
Resistance – 50 EMA, 200 EMA, 74.700, 74.930
Entry Zone:
Optimal entry provides the greatest reward to risk ratio while supporting entry is a zone for reversal signals.
Optimal Entry – 74.470
Supporting Entry – 74.500
Candle Reversals for entry
- Bullish Hammer
- Bullish Engulfing
- Bullish Piercing
The Risk:
As traders, it is your job to mitigate the risk and only trade structures that provide high probability and great reward to risk ratios.
If you are not comfortable with defined exit levels, experiment with Moving Averages to help set solid exit rules to protect your capital.
IF: Price breaks below 74.355 – this would suggest the structure is not in our favour and would be wise to reduce exposure or close the trade until a solid signal gives us reasons to re-enter.
Reward / Reward Targets:
Optimal Entry 74.470– Target 1 74.700 = 2x Reward to Risk
Optimal Entry 74.470 – Target 2 74.930 = 4x Reward to Risk
Supporting Entry 74.500 – Target 1 74.700= 1.7x Reward to Risk
Supporting Entry 74.500 – Target 2 74.930 = 3x Reward to Risk
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