AUDJPY has broken down a significant supporting trendline. This trendline has acted as support since July of 2016, and we can expect price to now test the trendline to confirm it as resistance at which point we will have an opportunity to short this pair. I am looking for the following:
1) Price to approach the trendline
2) A price trigger to confirm the trendline as valid resistance (bearish engulfing candle, bearish outside candle, dark cloud cover, hanging man, shooting star etc)
3) targets of 84.000 (previous minor swing point from June 22, 2017) and 82.050 (last clean bounce and significant swing point from June 06, 2017)
4) Stop loss dependent on how deep of a test we get of the trendline, but most likely above the 1.272 level at least.
1) Price to approach the trendline
2) A price trigger to confirm the trendline as valid resistance (bearish engulfing candle, bearish outside candle, dark cloud cover, hanging man, shooting star etc)
3) targets of 84.000 (previous minor swing point from June 22, 2017) and 82.050 (last clean bounce and significant swing point from June 06, 2017)
4) Stop loss dependent on how deep of a test we get of the trendline, but most likely above the 1.272 level at least.