AUD/JPY Short Trade Bias

20 nov 2019

Loving this trend in AUD/JPY both on the Daily & Weekly. Currently, we've seen the weekly pullback to a dynamic resistance (moving averages) where it's then proceeded to print a Doji rejection bar right on the 50% Fib level with a follow-through of last weeks bearish close. On top of that, we've seen the stochastic come to an overbought level on the weekly and proceeded to cross over which gives us extra confirmation. I think having a wide enough SL (100 pips) with a target of 270 pips or so could be a pretty decent trade.

So to check this trade-off we have:

Weekly Stochastic overbought (Check)
Weekly rejection Doji and lower high (Check)
Weekly Bearish Engulfing close (Check)
Moving Averages working as dynamic resistance (Check)
Rejection at the 50% level (Check)

Looks good to me!