AUDJPY Short
Disclaimer: This trade idea is for educational purposes only and is not intended to be financial advice, I will not be held responsible for trades taken based on this trade idea , the risk is entirely on you.
Audjpy has been on an uptrend since around the 8th of March 2020. so ideally we should be looking for long positions. Price is currently sitting around an area of resistance as indicated by the green rectangle, price seemed unable to break through this resistance just before Christmas and as such price closed below the resistance area. Price has been making higher lows and higher highs into this resistance area, which leads me to believe that price will eventually break through the resistance area that price finds itself in. My ideal area for price to rally to would be the purple rectangle placed on the chart, this area is our fresh supply and looks to me as if it is a strong area for a possible reversal, because previously price rallied to that point and fulfilled enough short orders that it was able to push lower. Thus my main scenario is looking for reasons to short this pair once price reaches that purple rectangle.
The alternative scenario that I am seeing is that price could fulfill enough sell orders at the green rectangle where price is currently situated and price could drop from there until the red rectangle i have placed on the chart. This all depends on what happens on the opening of the markets.
If you find this trade idea useful, please do leave a like as it would be much appreciated. Thank you for your time and have a wonderful day :)
Audjpy has been on an uptrend since around the 8th of March 2020. so ideally we should be looking for long positions. Price is currently sitting around an area of resistance as indicated by the green rectangle, price seemed unable to break through this resistance just before Christmas and as such price closed below the resistance area. Price has been making higher lows and higher highs into this resistance area, which leads me to believe that price will eventually break through the resistance area that price finds itself in. My ideal area for price to rally to would be the purple rectangle placed on the chart, this area is our fresh supply and looks to me as if it is a strong area for a possible reversal, because previously price rallied to that point and fulfilled enough short orders that it was able to push lower. Thus my main scenario is looking for reasons to short this pair once price reaches that purple rectangle.
The alternative scenario that I am seeing is that price could fulfill enough sell orders at the green rectangle where price is currently situated and price could drop from there until the red rectangle i have placed on the chart. This all depends on what happens on the opening of the markets.
If you find this trade idea useful, please do leave a like as it would be much appreciated. Thank you for your time and have a wonderful day :)
Disclaimer
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