Top of Major Range, Butterfly Appeared Within Resistance Zone, Short AUDJPY, 11th October 2016

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

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