This long bias emerged throughout last week, I posted this same set up (better entry) on Instagram ,@nicklindleyfx, after noticing it Thursday. Heres my breakdown:
On the above chart (4 hour) Its easy to see a break of the previous lower high following AUD/JPY's recent bearish trend. This break came after price put in play a valid, long term, higher low on the weekly. Price has retested the previous lower high coinciding with a 4 hour 61.8% fibonacci rejection (highlighted in the blue zone). This level is confirmed with a daily bullish candle close. We are also trading above the 50ema on multiple time frames supporting my long bias.
I believe we will see this short term bullish trend continue, and a safe target would be 85.078 (previous higher high). However this bias is not supported by my weekly "currency strengths" with the Australian dollar ranking weaker then the yen. I have also missed my preferred entry to obtain a reasonable risk: reward of 2.68. I won't be entering this trade from the weeks open (however I do not doubt that price will continue to rally next week)
On the above chart (4 hour) Its easy to see a break of the previous lower high following AUD/JPY's recent bearish trend. This break came after price put in play a valid, long term, higher low on the weekly. Price has retested the previous lower high coinciding with a 4 hour 61.8% fibonacci rejection (highlighted in the blue zone). This level is confirmed with a daily bullish candle close. We are also trading above the 50ema on multiple time frames supporting my long bias.
I believe we will see this short term bullish trend continue, and a safe target would be 85.078 (previous higher high). However this bias is not supported by my weekly "currency strengths" with the Australian dollar ranking weaker then the yen. I have also missed my preferred entry to obtain a reasonable risk: reward of 2.68. I won't be entering this trade from the weeks open (however I do not doubt that price will continue to rally next week)