Trade of The Day – AUD/JPY

Facts: AUDJPY bounced off the key resistance area at 112.66 The pair remains in a downward trend The pair sits below the 200-period moving average

Recommendation: Trade: Short AUDJPY at market price Target: 111.36, 110.75 Stop: 113.06

Opinion:

Looking at AUDJPY on the H4 interval, one can see that the pair is trying to return to the main trend. Bulls did not manage to break above the key resistance at 112.66, and sellers took over. The aforementioned resistance is a result of an upper limit of 1:1 structure. According to the Overbalance strategy, as long as the price sits below it, one should expect the price to go lower. In addition, the price sits below the 200-period moving average which confirms the bearish sentiment. We recommend going short AUDJPY at market price with two targets: 111.36, 110.75 We also recommend placing a stop loss order at 113.06.

Source: xStation5