On May 18 2022 I posted on social media the AUDJPY 4 hour chart bullish scenario. In the chart below there are clear visible bullish market patterns that are calling for a move higher. Blue bullish market pattern already triggered BUYS at the pattern entry line where point 5 terminated. Red bullish pattern also triggered BUYS at the AB=CD level. The pair reacted with a move higher and I entered the BUY trade on the retrace at 89.10 with Stop Loss at 88.45 and Target minimum at 90.40 (1:2 RR) maximum 95.60 (1:10 RR). Only a move below 87.29 will invalidate both bullish patterns.
AUDJPY 4 Hour Chart May 18 2022
Minimum target at 90.40 was hit for +130 pips on May 19 2022. Before the close of the trading week, on May 28 2022. a bullish pennant pattern (Purple) formed and price broke and closed above the top of the pennant adding more evidence the pair can continue pushing higher. Another signal of a move higher will be when price breaks above the previous lower high confirming the bearish LL/LH (Lower Low/Lower High) sequence is over. How high AUDJPY will rally only time will tell.
AUDJPY 4 Hour Chart May 28 2022
A trader should always have multiple strategies all lined up before entering a trade. Never trade off one simple strategy. When multiple strategies all line up it allows a trader to see a clearer trade setup. If you followed me on social media you too could have caught the AUDJPY trade setup. We at EWF never say we are always right. No market service provider can forecast markets with 100% accuracy. Only thing we at EWF 100%, is that we are RIGHT more than we are WRONG.
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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