Developing story
AUD/JPY has formed a support structure on both the monthly and daily time frames that open the prospects for a high probability continuation trade.
Swing traders will monitor for entry on the lower time frames, such as the 4-hour chart, looking to a high probability setup with favourable risk to reward.
The following is a top-down analysis of how the trade setup could evolve.
Monthly chart
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The monthly chart shows that the price us in a strong uptrend having broken above the prior resistance now turned support and holds above the 21 EMA with bullish technical readings on RSI and MACD.
Daily chart
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The price has given the market a sufficient retracement to the support structure for bulls to start monitoring for a long swing trading opportunity.
4HR chart
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The price is not ready for trading until it gets above the 21 EMA on the 4HR and current resistance that will turn support on a retest for a 1:3 risk to reward ratio and high probability setup.
This is a developing story and price action will be monitored from a 4HR perspective IF the price can break higher from here. If not, then the trade setup is invalidated.
More to come…
