Hoping all are well let me share with you my view about the AUDJPY pair.
The chart I use is the daily. Why is the daily chart especially important?
Well we are able to see how price behaved in the three markets (asia, uk and us) in one whole day.
This gives us a more precise opinion on where the overwellming market participants want to take price.
If all the market participants agree on direction then we might as well jump on board on the same side of the overall sentiment.
To start the first thing one might do is double check the chart for the trend.
On the white numbers you may see that price on this pair is trading down. We are able to see lower lows and lower highs.
Number four represents the area of 79.200 to 79.800 which was a new low.
Then price retraced back to the now area of 82.000 to 83500.
If this area holds and if you prefer to be a bear and take a short trade then you would be trading in direction of the trend.
You would also trade in direction of stochastiks which is turning down below the 80 % level meaning that it is not over the 80% level which means price would be in a trending mode.
The target would be for shorts the area of 79.500.
If price prints a nice bullish candle and the resistance level is broken then price might ge going to number 7 displayed on the chart at the area of 89.500.
BEST OF PIPS