- AUD/JPY is an attractive short below the daily structure.
- Currently, the stars do not quite align across all time frames from a top-down market structure analysis.
The Monthly is bearish and is looking as though it wants to form a head and shoulders.
The weekly is proving that there is resistance that first needs to hold the bullish commitments at this juncture.
The daily chart has a strong bullish bias while holding above a strong support structure along with the ascending trendline support.
The above chart shows a potential reversal head and shoulders pattern in the making, offering downside target opportunities for the bears.
The weekly chart is showing that the bulls are trying for a second attempt a the resistance. Should they fail, the prospects for the head and shoulders are sound.
The daily support structure is a confluence of higher lows, the support trendline and a restest of the structure which confirms a bullish bias.
However, should the same confluence breakdown, then bears will be looking to take over in the barroom brawl zone and a shorting opportunity on a retest of broken support structure turned resistance.