AUD JPY heading to strong support?
Hi Guys,
All the .../ YEN pairs have had massive selloffs recently. It seemed like just press sell button over last two weeks and you make money, quite the inverse of the last few months.
AUD / JPY was one of the pairs that went on a massive bull run from May this year and is currently heading towards a possible strong support area where it took off last time around.
The highlighted yellow box with the thick black line is that zone and it contains an unmitigated daily order block (19 April red hammer candle) from which we may see a strong bounce.The thick black line is the 1.618 retrace from the recent high (point B) to the order block zone (Point C) of the daily support that was not respected at all (Point A). Most of the other YEN pairs actually tested similar zones around MAY this year and we know what happened from there. AUD/JPY did not retrace as much from the APRIL high and left this order block untested. The big players likely have orders to fill here. With the selling pressure being so intense up to this point it will be interesting to see if it is respected, although in saying that, big moves come from exactly this type of price action heading into order block zones.
The 200 DMA is hovering around this zone as is an important AVWAP from July 23 lows. Possible scenario could be an undercut of the 200DMA and reclaim of that before moving up. Daily RSI is deeply oversold (levels not seen for a while for this pair).Lower timeframe setups using candlestick pattern, chart pattern, CHOCH BOS etc could present with nice risk to reward trade with stop loss being just under order block zone.
Safe trading all
All the .../ YEN pairs have had massive selloffs recently. It seemed like just press sell button over last two weeks and you make money, quite the inverse of the last few months.
AUD / JPY was one of the pairs that went on a massive bull run from May this year and is currently heading towards a possible strong support area where it took off last time around.
The highlighted yellow box with the thick black line is that zone and it contains an unmitigated daily order block (19 April red hammer candle) from which we may see a strong bounce.The thick black line is the 1.618 retrace from the recent high (point B) to the order block zone (Point C) of the daily support that was not respected at all (Point A). Most of the other YEN pairs actually tested similar zones around MAY this year and we know what happened from there. AUD/JPY did not retrace as much from the APRIL high and left this order block untested. The big players likely have orders to fill here. With the selling pressure being so intense up to this point it will be interesting to see if it is respected, although in saying that, big moves come from exactly this type of price action heading into order block zones.
The 200 DMA is hovering around this zone as is an important AVWAP from July 23 lows. Possible scenario could be an undercut of the 200DMA and reclaim of that before moving up. Daily RSI is deeply oversold (levels not seen for a while for this pair).Lower timeframe setups using candlestick pattern, chart pattern, CHOCH BOS etc could present with nice risk to reward trade with stop loss being just under order block zone.
Safe trading all
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