AUDJPY | Perspective for the new weekThis is going to be a short one as the daily chart explains the interaction between the sellers and buyers in the last 10-months.
With a simple supply and demand structure identified on the daily timeframe, I am of the opinion that we might be witnessing a short term downside for the Aussie in the coming week as the JY85.600 area reflects a strong memory for selling pressure (May and October 2021).
Tendency: Downtrend (Bearish)
Structure: Supply & Demand
Observation: i. It is a wide range of consolidation phase since May 2021 as price oscillates within JY86.000 and JY78.400 (approximately 700pips in 10months)
ii. Connecting a series of prices with a line drawn above pivot highs on the monthly chart shows the prevailing direction and speed of price in the last 8 years.
iii. The supply zone appears to share a confluence with the bearish trendline identified on the monthly chart hence I shall be looking for a significant reversal structure to plan a selling opportunity in the coming week.
iv. Key level at JY85 shall be my yardstick for sell continuation... Trade consciously!😊
Trading plan: SELL confirmation with a minimum potential profit of 250 pips.
Risk/Reward : 1:6
Potential Duration: 7 to 20days
NB: This speculation might be considered to make individual decisions on the lower timeframe.
Watch this space for updates as price action is been monitored... I shall be sharing a video of how I am going to take advantage of this trade if the price goes as planned on my new jou tube channel.
Risk Disclaimer:
Margin trading in the foreign exchange market (including commodity trading, CFDs, stocks etc.) has a high risk and is not suitable for all investors. The content of this speculation (including all data) is organized and published by me for the sole purpose of education and assistance in making independent investment decisions. All information herein is for your reference only and I take no responsibility.
You are hereby advised to carefully consider your investment experience, financial situation, investment objective, risk tolerance level, and consult your independent financial adviser as to the suitability of your situation prior to making any investment.
I do not guarantee its accuracy and is not liable for any loss or damage which may result directly or indirectly from such content or the receipt of any instruction or notification therewith.
Past performance is not necessarily indicative of future results.
