The AUDJPY cross, in its 8-hour chart, shows the price action advancing in an ascending wedge pattern, which suggests the bearish continuation of the previous bearish trend.
Until now, the Oceanic cross completed four waves of Subminuette degree identified in green. For the following trading sessions, we expect a limited upside, which could develop a thrust as a false breakout completing the ascending wedge pattern.
Our conservative scenario considers a sell-side position if the price breaks and closes below the last low at 69.941. The potential bearish target locates at the end of wave iv in green at 67.680.
The bearish scenario will be invalid if the price soars and closes above 71.460.
Trading Plan Summary
- Entry Level: 69.972
- Protective Stop: 71.460
- Profit Target: 67.680
- Risk/Reward Ratio: 1.5
- Position Size: 0.01 lot per $1,000 in trading account.