Facts:
AUDJPY bounced off the key resistance area at 96.62
The pair remains in a downward channel from 15th of July
Recommendation:
Trade: Short AUDJPY at market price
Target: 96.01, 95.70
Stop: 96.88
Opinion: Looking at AUDJPY on the H1 interval, one can see that the pair is trading in a downward channel. Bulls did not manage to break above the key resistance area at 96.62, and sellers took over. The aforementioned area is a result of an upper limit of 1:1 structure, upper limit of descending channel and 78.6% Fibonacci retracement of the recent downward move started on 18th of July. According to the Overbalance strategy, as long as the price sits below it, one should expect the price to go lower. We recommend going short AUDJPY at market price with two targets: 96.01, 95.70. We also recommend placing a stop loss order at 96.88. Source: xStation5
