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

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AUDJPY H4, Top of Major Range, Major Resistance Zone

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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.
Modification:
[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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