AUDJPY H4, Top of Major Range, Major Resistance Zone
AUDJPY M15, Butterfly Appeared Within Major Resistance Zone, FR127.2%

Technical Analysis: The price has reached the top of a major range and within the major resistance zone thus a high probability of a reversal.

In M15 chart, a butterfly has appeared and within the major range where the final leg landed on FR 127.2%, signaling the completion of a butterfly.

Market Sentiment: There isn’t any clear direction for both AUD and JPY which the market will then put more weights on the technical chart. Since USDJPY is also seen exhausted within a major resistance zone, there is a high probability and yen may strengthen again or rather yen pairs will resume depreciation. There isn’t any sign for yen to weaken in any case.

Trading Plan: Short with 1/2 risk to confirm the effect of the butterfly.

Stop loss was set 24 pips above FR127.2%.

Once the price reaches the current minor support zone, wait for a retracement to stack another position.

[11/10/16 11:55] Shift Stop Loss to entry price as the price has reached FR61.8%.AUDJPY.M15 20161011.png

Waiting for a retracement to stack new trade.

[12:17] Take Profit 1/2 position as price got supported and rebounded off from FR61.8%.

Now waiting for the price to make its 2nd minor retracement to stack a new trade.

[17:23] Full Exit as price failed to break below FR61.8% again.

Will be waiting for the price to make another 2 minor retracements to enter a new trade.

Result: Gain 2.3% AUDJPY.M15 20161011 result.png