AUDJPY – Short Trade From Corrective Structure In Profit, Bearish Bias | May 5
NOTE: NFP is tomorrow so make sure to take the necessary pre-cautions.
AUDJPY – Short Trade From Corrective Structure in Profit, Bearish Bias (1hr chart)
Hovering just below the 82 figure, the RBA unexpectedly cut interest rates this week sending the AUDJPY reeling, also leaving the door open for future rate cuts.
The result was about a 200 pip drop in about an hour. What followed was a large corrective structure for almost 3 days between 80.42 and 79.54.
I decided to sell at 80.42 and am currently up about +120 pips of profit which you can see in the image below showing the live trade entry and current profit.
I also tweeted my bearish bias towards the Aussie yesterday.
Now that we’ve broken the large corrective structure, the bearish bias is firmly in place while below it and the key resistance now around 79.54. Traders not currently short can watch for corrective pullbacks towards the role reversal level and look for opportunities there.
Downside the next support level and target for bears comes in around the 78 handle. Only a daily close back above the 80 big figure will negate my bearish bias.
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