AUD/JPY is developing a Bullish Bat harmonic pattern on the 4-hour chart. While the full pattern has not yet completed, a potential short-term bearish opportunity is emerging as the pair begins forming the CD leg.
A clear bearish divergence on the RSI at Point A suggests waning bullish momentum, and a break below Point B may confirm the start of the final leg down toward Point D, completing the harmonic structure.
Trade Setup
Sell Stop Entry: 96.009 (break of Point B – confirms CD leg underway)
Stop Loss: 96.978 (above Point C – invalidates CD leg projection)
Take Profit 1: 95.040 (1:1 risk-to-reward level)
A clear bearish divergence on the RSI at Point A suggests waning bullish momentum, and a break below Point B may confirm the start of the final leg down toward Point D, completing the harmonic structure.
Trade Setup
Sell Stop Entry: 96.009 (break of Point B – confirms CD leg underway)
Stop Loss: 96.978 (above Point C – invalidates CD leg projection)
Take Profit 1: 95.040 (1:1 risk-to-reward level)
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.