We can see a corrective upward swing on the AUD/JPY chart on a daily time frame, with a complex rising wedge pullback that is respecting the fibonacci r retracement ratios as well. The following are the confluences identified;
1. 61.8% fibonacci retracement
2. Rising wedge formation
3. Long-term bearish trend
Besides these factors, I have used the super-trend indicator which personally is one of my favourites for any trend following strategy. An alignment of the supertrend lower band and the lower line of the wedge indicates that the breakout of the wedge, if happens will be confluenced by the supertrend indicator as well.
However, I'll be looking into a short term corrective move upward to the wedge after the breakout which is where I shall be placing my entry. Overall, this trade is providing a decent risk to reward of 1:2.45, with a move of approximately 400 pips downward.
Happy Trading!
1. 61.8% fibonacci retracement
2. Rising wedge formation
3. Long-term bearish trend
Besides these factors, I have used the super-trend indicator which personally is one of my favourites for any trend following strategy. An alignment of the supertrend lower band and the lower line of the wedge indicates that the breakout of the wedge, if happens will be confluenced by the supertrend indicator as well.
However, I'll be looking into a short term corrective move upward to the wedge after the breakout which is where I shall be placing my entry. Overall, this trade is providing a decent risk to reward of 1:2.45, with a move of approximately 400 pips downward.
Happy Trading!