At the moment AUDJPY is currently pushing lower from the September 13 2022 high. Looking at the Daily chart below we could still expect for the pair to continue pushing lower on reasons that the pair is currently in a lower low / lower high sequence and a visible bearish divergence pattern is forming signalling for a continuation to the down side. Price is also respecting the supply zone and is reacting lower from this zone adding more bearish confluence. All these put together can call for another possible move lower and can possibly break below December 20 2022 lows.
I placed a SELL/SHORT entry at 90.32 with stop loss at 93.42 (1% risk) and looking for a minimum target at the 1:2RR 90.32 level and a maximum target at the 1:5RR 87.32 level . If price continues lower to the 1:2RR/1:3RR targets I will look to close most of the SELL position (3/4) and remain holding a small piece (1/4) to see if can extend lower to the 1:5RR/1:6RR target levels. Let’s see how it plays out in the coming days.
AUDJPY Daily Chart January 30 2023
Of course, like any strategy/technique, there will be times when the strategy/technique fails so proper money/risk management should always be used on every trade. Hope you enjoyed this article and follow me on social media for updates and questions> @AidanFX
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