Going through the charts today I spotted this potential short set-up on AUD/JPY.
On the weekly, price has pierced above 88.000 level but has sharply rejected to maintain a bullish rally above this level, this could indicate bulls are exhausted and this pair needs to see ap pullback before going higher.
Price has broken a consistent bullish trend by breaking below the previous higher low of 87.733 which should indicate more sellers will be entering this pair. Zooming in on the 4 hour chart, som nice bearish confluence add up, with a rejection of the deep 61.8% fib level coinciding with the previous higher low with a supporting technical strength score of -6.
Targets for this pair are as follows:
- A shorter term target, I would say would be safe to aim for new lows of 87.356. With a more adventurous target of 86.650 if we were to pierce new lows sharply!
On the weekly, price has pierced above 88.000 level but has sharply rejected to maintain a bullish rally above this level, this could indicate bulls are exhausted and this pair needs to see ap pullback before going higher.
Price has broken a consistent bullish trend by breaking below the previous higher low of 87.733 which should indicate more sellers will be entering this pair. Zooming in on the 4 hour chart, som nice bearish confluence add up, with a rejection of the deep 61.8% fib level coinciding with the previous higher low with a supporting technical strength score of -6.
Targets for this pair are as follows:
- A shorter term target, I would say would be safe to aim for new lows of 87.356. With a more adventurous target of 86.650 if we were to pierce new lows sharply!