AUD/JPY - Bearish Bat
Updated
Interesting setup on the Daily chart for AUD/JPY with a potential bearish bat, as you can see price has recently broke out of a descending channel and heading towards our D point at 88.500.
The measurements for a valid bat pattern are detailed below.
B: 0.382 - 0.50
C: 0.382 - 0.886
D: 1.618 - 2.618
Final X to D: 0.886
I'll be looking for additional analysis in the near future :)
The measurements for a valid bat pattern are detailed below.
B: 0.382 - 0.50
C: 0.382 - 0.886
D: 1.618 - 2.618
Final X to D: 0.886
I'll be looking for additional analysis in the near future :)
Note
We are now approaching a crucial level of weekly resistance at 88.600 which aligns with the D point of the bearish bat on the daily chart (therefor completing the harmonic pattern and providing a shorting opportunity). This price level has been a major pivot point in the market for almost two decades, with price trading above and below overtime.In addition, the relative strength index shows price is now over-bought on both timeframes (daily and weekly).
Note
Keep an eye on this price structure on the 4h chart.Note
Price is currently retesting resistance once again, I'll be heavily watching this pair for a shorting opportunity if we break this level.Note
Price is now approaching the potential reversal zone, I'll be looking to short within the grey area.
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