Potential short set-up in play here on AUD/JPY. last week's candle closed as some strong rejection of the 89.990 weekly resistance level confirmed by a daily bearish engulfing candlestick.
Zooming in on the 4-hour time frame, my short bias is strengthened with a bearish close below the ascending trend line alongside a break below the previous higher low - this looks to be a break of bullish structure. Price currently looks to be forming a new lower high after some market correction.
On the hourly, price has been putting in some very supportive candles of a new lower high forming with price closing below the 50ema. It will be interesting to see how the market opens as it could offer an instant entry.
My downside targets are at the 88.00 Key level initially, as I think price will find short term support here, if broken I believe we will see price fall further to 86.690. I think price is due for a further correction looking on the weekly, to set a deeper higher low before we go higher in the long term.
Zooming in on the 4-hour time frame, my short bias is strengthened with a bearish close below the ascending trend line alongside a break below the previous higher low - this looks to be a break of bullish structure. Price currently looks to be forming a new lower high after some market correction.
On the hourly, price has been putting in some very supportive candles of a new lower high forming with price closing below the 50ema. It will be interesting to see how the market opens as it could offer an instant entry.
My downside targets are at the 88.00 Key level initially, as I think price will find short term support here, if broken I believe we will see price fall further to 86.690. I think price is due for a further correction looking on the weekly, to set a deeper higher low before we go higher in the long term.