AUD/JPY ? Waiting Pullback and Continuation ✈️

3 min read
Adarwish

adarwish

Author

Hi traders,

AUD/JPY developed a bearish momentum during the last week … It seems that this price action was developing 5 bearish wave pattern I think that the pair is now in a bearish wave 3.

We will review different scenarios as the pair can either bounce for bearish momentum or continue the bullish momentum of wave 3.

This article will discuss the wave perceptive and expected scenarios for the pair during the coming days using wave pattern, support, and resistance and SWAT software.

AUD/JPY Wave Pattern

The below chart shows that the pair developed a bullish momentum… In my view, the pair is in wave 3 now and it still has some more upside remaining to end wave 3. And here are the main conclusions:

  1. Wave 3 is  finally target is usually at 161.8% Fibonacci expansion.
  2. Traders who is not in will wait for wave 3 to finish and for wave 4 pullback.
  3. And trade wave 5 continuation.

For the moment I expect the more bullish momentum to complete 12345 wave pattern… Traders need to wait for the confirmations for the setup entry point… In the next paragraph, we will discuss this development by using SWAT software.

AUD/JPY Wave Pattern

Now it’s time to use the SWAT 4-hour chart to determine the entry points according to the expected wave patterns… SWAT Chart shows bullish momentum but some developments to confirm the setup… Here are the main developments to consider:

  1. Need some pullback to retest 144 EMA.
  2. Then a strong bullish candle with bullish price action.
  3. Our target is the around Wizz level 6.
  4. I advise traders always to protect their profit or use trailing stops.

So in my view, traders should wait for the confirmation before trading this pair and look for long opportunities only as it matches the expected wave.

Good trading,

Ahmed
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