AUDJPY, Potential Sell
From a top down analysis, we see market has made an equal high to the same high previously made. And when we see that we can expect the market to make a retracement to complete the reverse Head and Shoulders pattern, for the continuation to the upside. It is interesting to note when we use the 38.2% fibs, we see that it is in confluence to a level in the monthly time, thus we can expect the market to come and test that area. So right now the market is a Monthly resistance.
Coming back to the Weekly, the situation is more clear of what might happen. The market created a demand area, met a resistance met a resistance, thus creating a little W formation. So we might also expect the market to come and retest the demand area before continuing to the upside. On the daily, we see that the market has being in an uptrend and rejected multiple times by the monthly resistance.. we can expect also the market to reject once more and then break the trend line and continue to the downside.
Fundamentally speaking the high institutions and the big players in the market, according to last COT report has opened massive amount of short (4K short) and (1K long), they are selling the AUD more. Concerning the JPY, they this time closed more Longs (3K) and open few shorts (3 hundred). So this still makes the AUD more stronger than the JPY at the moment.
SO we should put this pair on our watchlist, because if and only if the market is going to break the trend-line and thus breaking also support and comes for a retest, we will be monitoring price action on the 4H time, if the conditions of your strategies are met, then we can take the trade to the downside in completion of the second shoulder.
Coming back to the Weekly, the situation is more clear of what might happen. The market created a demand area, met a resistance met a resistance, thus creating a little W formation. So we might also expect the market to come and retest the demand area before continuing to the upside. On the daily, we see that the market has being in an uptrend and rejected multiple times by the monthly resistance.. we can expect also the market to reject once more and then break the trend line and continue to the downside.
Fundamentally speaking the high institutions and the big players in the market, according to last COT report has opened massive amount of short (4K short) and (1K long), they are selling the AUD more. Concerning the JPY, they this time closed more Longs (3K) and open few shorts (3 hundred). So this still makes the AUD more stronger than the JPY at the moment.
SO we should put this pair on our watchlist, because if and only if the market is going to break the trend-line and thus breaking also support and comes for a retest, we will be monitoring price action on the 4H time, if the conditions of your strategies are met, then we can take the trade to the downside in completion of the second shoulder.
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