AUD/JPY 06.01.2017 D1 chart.
50% Fibonacci of the long term downtrend and beginning of a new downward movement.
Price below diagonal and horizontal resistances.
Price action: Bearish engulfing at levels of resistance, as the correction of the bar gives us good price for short positions.
Technical indicators:
DeM(14) above 0,3 still haven't been in oversold zone which makes a sharp downward impulse very likely after crossing below 0,3
SL 86.00
Alternative scenario: If price breaks above the resistances this will cancel the bearish formation and will probably lead to increase in price.
Jr. Trader Nikolay Georgiev
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