In our continued attempt to trade pairs that do not include the USD, we see that the AUD/JPY is trading similar to the NZD/JPY which we discussed yesterday.
This pair is also showing a downtrend on the daily chart, so we should be looking for selling opportunities on the intraday charts. The 4-hour chart shows a rally up to resistance and then a reversal back to the downside. The MACD has already crossed over which for some traders is the signal to sell. These pairs still continue to be in a holding pattern, so keeping your risk small by not opening multiple trades at once is the play. Traders who do sell the crossover, would most likely place their protective stop above the recent high and look for twice that risk in profit potential for a 1:2 risk:reward ratio.