AUD/JPY Price Analysis: Bulls getting prepared for a 1:3 R/R swing
|Developing story
AUD/JPY has formed a support structure on both the monthly and daily time frames that open the prospects for a high probability continuation trade.
Swing traders will monitor for entry on the lower time frames, such as the 4-hour chart, looking to a high probability setup with favourable risk to reward.
The following is a top-down analysis of how the trade setup could evolve.
Monthly chart
The monthly chart shows that the price us in a strong uptrend having broken above the prior resistance now turned support and holds above the 21 EMA with bullish technical readings on RSI and MACD.
Daily chart
The price has given the market a sufficient retracement to the support structure for bulls to start monitoring for a long swing trading opportunity.
4HR chart
The price is not ready for trading until it gets above the 21 EMA on the 4HR and current resistance that will turn support on a retest for a 1:3 risk to reward ratio and high probability setup.
This is a developing story and price action will be monitored from a 4HR perspective IF the price can break higher from here. If not, then the trade setup is invalidated.
Price action update
There was no 4HR bid and the pair can be moved down on the watchlist while it still holds a major support structure.
Watching daily support for possible bullish conditions
Update: Meanwhile day trade opportunity arose
Should bullish conditions develop again, the short side will be a loss and we will be back to the drawing board, monitoring again for the bullish swing trading entry-point.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.