**Review on AUD/JPY Sell Setup**

9 ביוני 2024

**Review on AUD/JPY Sell Setup**

**Overview:**
The AUD/JPY pair has been showing a marked weakness of the Australian Dollar (AUD) against the Japanese Yen (JPY). This setup focuses on a bearish sentiment for the AUD/JPY pair, targeting specific fair value gaps (FVG) in the daily and H4 charts within the discount array.

**Technical Analysis:**

1. **Daily Chart Analysis:**
- **Trend:** The daily chart shows a strong downtrend, with lower highs and lower lows forming consistently. This indicates a prevailing bearish sentiment in the market.
- **Fair Value Gap (FVG):** There is a noticeable FVG in the daily timeframe, indicating an imbalance that the market may seek to fill. This gap provides a potential target zone for the sell setup.
- **Support and Resistance Levels:** Key support levels are likely to be tested, and if broken, can lead to further downside momentum. Resistance levels are holding firm, contributing to the bearish outlook.

2. **H4 Chart Analysis:**
- **Trend:** The 4-hour chart corroborates the bearish trend seen in the daily chart, with a clear sequence of lower highs and lower lows.
- **Fair Value Gap (FVG):** On the H4 timeframe, there are multiple FVGs within the discount array that align with the daily FVG, strengthening the case for a short position. These gaps offer precise targets for taking profit.
- **Indicators:** Momentum indicators such as the Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) are in bearish territory, supporting the sell bias.

**Entry Strategy:**

- **Entry Point:** Look for entry opportunities around resistance levels or when price action shows a clear rejection from key levels on the H4 chart. Confirmation can come from bearish candlestick patterns or a break below minor support levels.
- **Stop Loss:** A protective stop loss should be placed above recent swing highs to manage risk effectively.
- **Take Profit:** Initial take profit targets can be set at the H4 FVG levels, with subsequent targets at the daily FVG. This allows for partial profit-taking while still capitalizing on the overall bearish trend.

**Fundamental Analysis:**

- **AUD Weakness:** The Australian Dollar is currently under pressure due to various economic factors, including lower commodity prices, weaker economic data, and dovish monetary policy expectations from the Reserve Bank of Australia (RBA).
- **JPY Strength:** The Japanese Yen is benefiting from safe-haven flows amid global economic uncertainty. Additionally, the Bank of Japan’s (BoJ) policies and stronger economic indicators support the Yen’s strength.

**Risk Management:**

- **Volatility:** Be aware of high-impact news events that can cause sudden volatility in the AUD/JPY pair. Events such as RBA meetings, BoJ announcements, and global economic reports can significantly impact price movements.
- **Position Sizing:** Use appropriate position sizing to ensure risk is managed according to your trading plan. Avoid over-leveraging, especially in a volatile pair like AUD/JPY.

**Conclusion:**

The AUD/JPY sell setup presents a promising opportunity given the current technical and fundamental landscape. With the Australian Dollar showing weakness against the Japanese Yen, targeting the fair value gaps in the daily and H4 charts within the discount array provides a structured approach to capturing potential downside moves. As always, proper risk management and adherence to your trading strategy are crucial for success in this setup.