AUDJPY - Trendline-Neckline Break out (LONG)

AUDJPY
Price: 82.10

Analysis

There is a clear daily trend-line break in AUDJPY chart, which is also tested.
The Trend line happens to be the Neckline of bottom head-and-shoulder pattern with retest of the neckline.
The daily downward 5 Elliot waves is over and a new 5 upward wave is emerging. Which is accompanied by a upward move from wave 4 to 5 in H4 chart.
The divergence in MACD indicator in daily chart has been confirmed. The upward divergence is also detectable in RSI, CCI and Momentum daily chart.
A double bottom pattern is associated with the daily chart with a recognizable pick in between the two bottoms.
The weekly and Monthly pivots are almost identical with a narrow body.

Price of the asset is approximately 82.10 as the time we writing the analysis.

We go LONG at two different levels:

Position#1 (long)
1. At the pull back of price to 81.80
Stop Loss at 81.35 (45 pips)
Take Profit at 83.70 (190 pips)
Reward-Risk ratio = 4.2

Position#2 (long)
2. After the price reaches 82.60
Stop Loss at 81.90 (70 pips)
Take Profit at=84.40 (180 pips)
Reward-Risk ratio = 2.57

Money Management on different Scenarios

Scenario A)
If the price trigger position one, we buy at half capital:
If the stop is met in position#1, we cancel position#2.
if the price reaches to 82.50 we execute the next half of capital

Scenario B)
If the price goes up befor meeting the position #1 and ultimately trigger position#2, we execute the full capital on position #2 and cancel position#1.

Tomorrow Newspaper only publish its view on the market and do not take responsibility for any loss experienced by its view.

Note

Stop loss met - (70 pip loss)

Note

Correction:
Stop loss met - (58 pip loss)

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