Hi Traders! AUDJPY forecast update and follow up is here. On October 1st I shared this “AUDJPY Forecast” in Trading View. In this post, let’s do a recap of this setup and see how it has developed now. If you would like to learn more about the way we trade and the technical analysis we use then check out the Traders Academy Club. Spoiler alert – free memberships are available!
AUDJPY H4(4 Hours) Chart Current Scenario
Based on the above-mentioned analysis my view was bearish here and I was expecting the price to move lower further until the downtrend line holds. The price which was moving higher reached the key resistance zone, created a false break of it, and moved lower as I expected it to from this zone. In addition to this, the price broke above the downtrend line but it moved back lower later on creating a false break of this dynamic resistance. We may consider this as another fact provided by the market supporting the bearish view.
In addition to this, we had a bearish divergence that has formed between the first high that has formed on 1st October 2020 and the second high that has formed on 9th October 2020 based on the MACD indicator. And the price which was moving lower broke below the most recent uptrend line we may consider these as other facts provided by the market supporting this bearish view. The price then moved lower further as I expected and delivered around 230 pips move so far.
(Note: You can learn about a Killer Forex Strategy “Double Trend Line Principle” here)
As traders, we should always follow the facts. The facts are supporting the bearish view here and there are no signs against it. Because these are the kind of hints the market provides us at majority of the times and it’s our obligation as traders to be able to listen to these things that the market tells us and we should try to make the right actions.
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