AUD/JPY developed a bullish momentum during last months … It seems that this price action was developing a bullish wave 4 pattern on a big time frame (weekly chart) and I think that the momentum of bearish wave 5 is around the corner.
We will review different scenarios as the pair can either bounce for bearish wave 5 or expand the bullish momentum of wave 4.
This article will discuss the wave perceptive and expected scenarios for the pair during the coming days using wave pattern, support, and resistance and SWAT software.
AUD/JPY Bounce from Fibo 50% Level
The below chart shows that the pair developed a bearish 12345 wave pattern … In my view, the pair is in wave 4 correction pattern and now we are waiting for the wave 5 confirmation.
And here are the main conclusions:
- Wave 4 can be extended till 50% Fibo ratio and sometimes 61.8% of wave 3.
- As long as the price did not break Fibo 61.8% then this wave pattern is valid.
For the moment I expect one more lower low presenting bearish wave 5 but… Traders need to wait for the confirmations of wave 5 to take place before trading this pair… In the next paragraph, we will discuss this development by using SWAT software.
AUD/JPY Swat Chart
Now it’s time to use the SWAT 4-hour chart to determine the entry points according to the expected wave patterns… SWAT Chart shows a start of bearish momentum but some developments to confirm the setup… Here are the main developments to consider:
- Need price to break the 144 EMA.
- Alos need price to break the 21 EM,A
- Our target is the Wizz level 4, 5.
- I advise traders always to protect their profit or use trailing stops.
So in my view, traders should wait for the confirmation before trading this pair and look for short opportunities only as it matches the expected wave.
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