We’ve seen the AUDJPY market spring to life the last few weeks, breaking free of it’s congestion and selling into lower lows.
A very sharp, aggressive rally occurred out of the fresh lows – exploding price higher to test the previous breakout level.
The hold consolidation support level is now holding as new resistance. We can see that because we got a bearish reversal signal as the bears entered back into the market, and pushed price back lower on the re-test.
What I like about this bearish rejection candle is firstly, it has good form. The body is bearish, meaning the close price was lower than the open.
Also, it formed on top of a large rally. Notice how we’ve see strong bullish blue candles here all week with no correction, then all of a sudden we get the sell signal right at the top of the bullish tower.
The faster, and higher price travels in these ‘straight line’ moves, the better the sell opportunity  we get. It allows us to ‘sell high’, a golden rule of Forex trading.
Very interested in trading this one next week. The volatility in this market is good at the moment, so if the bears come back in for ‘their turn’, we could see another sharp move down into lower lows.
An easy 6x reward on risk if a we can grab a retracement entry.
Lucky Mbatha
It seems like the USDCAD, USDJPY and EURUSD gapped over the weekend thus your analysis if left over the weekend would have made big money 🙂 Like your powerful content that you share with the world. I’m from South Africa (Johannesburg) and I’m following and reading your blog to ensure i don’t miss any opportunity.
sentosa zr
good analisis