AUD/JPY Updte: Continued short after break of the trend line of the correction and retest

AUD/JPY:

Date: July 5, 2016

H4 Graph: Short Trend, D1 short trend

Price has broken short term trend line of the correction and now is back to retest it, the break at 76.60. Also price reached FIB 50% and horizontal resistance at level 77,50. Price Action – Pin bar at this level – possible signal for reversal – short by the trend

Bearish divergence of the price and DEM indicator at this point in time.

Alternative scenario: If the price breaks above the FIB 50%, above the trend line and above the 77,250, will cancel the bearish view.

Technical indicator:

DEM (14) – H4 – down to 0,3, but still not in oversold zone

Centiment: Australia left the interest rate unchanged at 1.75%. but this decision was very hard and with talks of lowering it further.  The national election did not produce a clear winner and they are in a state of hung parliament. The indices are up to the previous highs and levels of strong resistance, where correction can happen. The JPY can become stronger and continue to go up.

Price for Entry short around: 77,60 – at level of trend line break

SL: 77.250 or 77,55 above the previous high

Jr. Trader –  S. Fuchedzhiev