Trade active
Cautiously opened 1 position, will (most likely) add more if the price continues further to the South and returns to the body of the pattern.Trade active
Unlike GBPUSD which started falling after making the double top, AUDJPY (6 positions now) kept staying in the range around point V.
The combination of 3 factors is currently supporting the possibility of trend reversal. First of all, RSI is demonstrating clear bearish divergence which is always a good sign. Second, the volume kept increasing while the price was staying in the range which can be viewed as a sign of accumulation phase. And third, the latest green candle with largest bullish volume was outperformed by its bearish counterpart with even greater volume just two bars later.
All of the above gives hope to the wave to continue its development successfully.
Trade active
The setup described in the previous update was a success and formed point V of purple wave.Its lowest point formed point 2 of the future yellow bearish pattern which is close to completion now and can provide good opportunity to open more shorts.
Note
Successful execution of minor yellow wave finalized the formation of point V of major purple pattern.The pair is currently on its way to retest line II-IV. If it is broken, the next step is designated target at point VI.
Trade closed manually
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Related publications
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.