[TW] 2012-08-13 Long AUD/JPY by Pinggwyn

[B]Long or Short:[/B] Long
[B]Entry Point:[/B] 82.75
[B]Stop Loss:[/B] 81.90
[B]Profit Target/s:[/B] 84.00
[B]Reward-to-risk Ratio:[/B] around at least 1.47:1
[B]Risk percentage:[/B] 1%

[B]Trade Rationale:[/B]
[U]Technical[/U] - Oversold Stochastics signal, possible support at former resistance, 50% Fibo and rising trendline on the 4-hour time frame

[U]Fundamental[/U] - Australia’s positive jobs data, RBA’s upgraded growth forecasts, rising gold prices

[B]Trade Adjustments:[/B]
I’ll move my stop loss to break even as soon as price reaches former resistance at 83.25.

I think that this pair will go higher so your trade should work. Just wanted to point out that your trend line is not really drawn correctly in my opinion. I believe they should always be drawn from swing high/lows or in other words significant points. Your first touch is not one. Also i see you have drawn your fib to just the top of the candle and not the wick. This could have an impact on the fib lines. So i think your trade will work but I would be careful not to draw lines so it fits your trade (if that makes sense). Good luck.

The trade set up is good.

Your analysis is great, I just happened to have a different perspective. Technically I can see a bearish divergence at the top (check the recent 2 peaks on chart and on the indicator). Fundamentally I see AUD is sensitive to China’s economic data (which is not so good at the moment). So I took opposite side of the trade few days back. It is interesting to see the outcome. Hey we both could be correct- depends on when we close our trades. :slight_smile: