As I have stated many times in the articles and analysis the AUDJPY is heavily correlated with Chinese data. Bad Chinese data and equities drop. AJ drops too. It is called a positive correlation. Last night Caixin PMI printed out 50.2 vs 52.3 estimate. If you want to trade the pair which is correlated to Chinese markets its the AUDJPY.
Technically we can spot 2 POC. Currently the pair is accompanied by a bullish divergence which could spike the price up towards POC selling point. Watch for a possible rejection off the channel lows towards 85.20-40. If the pair retraces in the POC zone ( L4, bearish order block, near term sellers, channel top) it should drop towards 83.05 which is the target for the move. A deeper retracement could trigger at the channel top break and H1/H4 close above the channel top - 85.40 towards POC2 86.20-40 (L3, E89, historical sellers).
The target is 83.05 but pay attention to possible retracement after the channel bounce. If it doesn't happen it could be a direct drop.
The analysis and the article presents Nenad's opinion. Remember, financial trading is highly speculative & may lead to the loss of your funds. Proper risk management is the Holy Grail of trading.
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