AUDJPY had a massive Bearish ride on the H4 and the Daily chart. However, by looking at its current price action, it seems that the pair is getting ready to make an upside move or at least some correction for the Daily chart. On its way, it might give us an opportunity to take a long entry later today. Let us have a look at the H4 AUDJPY chart.
AUDJPY Price Action Analysis – 11th Sept 2018
Have a look at today’s 2nd H4 candle. It came out as a Bullish Engulfing candle and made a breakout at yesterday’s higher high. The current candle seems to be Bullish, but it would be best if it comes out as an Inside bar. If that really happens and we get an H1 Bullish Engulfing candle to be formed at the level of 79.220, then buying the pair would get us some green pips. Let us have a look at the summary of the trade…
- Buy Limit Order: 79.220
- Stop Loss: 78.960
- Take Profit: 79.800
- Validity: 72 hours
- Whenever possible, move the stop loss to the entry price and whenever you want, you can take profit anytime as long as you feel comfortable
This is an ABC pattern setup. We have set our “Stop Loss” right below today’s lower low (78.960 here). This is the safest place to set the Stop loss. Some traders set their “Stop Loss” right below the breakout level (79.220 here). Both are right. The second one offers better Risk and Reward ratio but has more risk, but the first one has less risk but the Risk and Reward ratio is not that great. The choice is yours at the end of the day.
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