AUDJPY SHORT (Mean Reversion)Confluences:
1: Stop loss hunt at previous high on weekly level plus a breakout.
2: Price heading towards high of the June(2021) which is an important supply zone with many retail stops.
3: Price has been moving very quickly which signals an over extended market for the pair.
Summary:
Price is currently over extended and has been moving in a up trend for 2 almost weeks straight. We are looking for a potential stop hunt at the high of June where many retail stops may be sitting. We might see a further push to the upside at the new weeks open.
There's is a potential for strong mean revision to take place allowing big players to hunt some stops and grab some liquidity before we see a continuation to the upside in a few weeks to come.
This trade is expected run for the next 8-9 trading days or until the target is reached, whichever comes first. Always remember to Buy to the low and Sell the high. We will be looking for any entries early next week. Remember to always buy the low and sell the high.
