AUDJPY Short Term Forecast Update And Follow Up

Hi Traders! AUDJPY short term forecast update and follow up is here. On December 14th 2021 I shared this “AUDJPY Short Term Forecast And Technical Analysis” post in our blog. 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!

My Idea

Looking at the H1 chart, based on the Heikin Ashi candles we can see that we had strong bullish bodies in upward moving market conditions so it basically reflects a bullish environment. After the strong bullish move currently it looks like a flat correction is happening in the form of a range. While measuring the first and second wave inside this range we have two key support zones that has formed. The first key support zone is formed by the 100%(80.683) Fibonacci expansion level of the first wave, 61.8%(80.480) Fibonacci expansion level of the second wave and the bottom of the range. The second key support zone is formed by the 161.8%(80.144) Fibonacci expansion level of the first wave and 100%(80.068) Fibonacci expansion level of the second wave. Until both these key support zones hold my view remains bullish here and I expect the price to move higher further in the short term.

 

AUDJPY H1(1 Hour) Chart Current Scenario

On the H1 chart, based on the above-mentioned analysis my short-term view was bullish and I was expecting the price to move higher further until the two key support zones hold. The price action followed my analysis exactly as I expected it to here. The price respected the first key support zone and then it moved higher and delivered around 200 pips move until it was blocked by a bearish divergence. The price then moved lower and reached the second key support zone. The price respected this support zone and also we had a bullish divergence that has formed between the first low that has formed at 81.419 and the second low that has formed at 80.270 based on the MACD indicator which we may consider as evidence of bullish pressure. The price then moved higher further delivering around 400 pips move!
So, traders, this is why I wanted to show this example to help you understand how important it is to follow the facts. The facts were supporting the bullish view here and there were no signs against it. When the facts do happen as we expected you can see how the price perfectly moved as per the plan. 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.

For similar trade ideas and much more I invite you to

 

Happy Trading!

Arvinth Akash
Traders Academy Club Team.

Advertisement

Click To Join Our Community Telegram Group