There is a shortage of quality trade setups or even potential setups at the moment. This is fueled largely by the global uncertainties that continue to make headlines along with it being August, a month not known for offering a lot of follow-through.
During times like this it’s often best to limit your expectations or even take a month off from trading until market conditions improve. By lowering your expectations you not only trade less frequently, you expect less follow-through on the quality setups that do present themselves.
AUDJPY is a perfect example of a pair that has been stuck in a range after breaking below six-year channel support on July 6th. Although the bears have lacked the conviction necessary to push the pair lower, the 300 pip range does offer potential given the right setup.
That setup may have just materialized as the pair has formed a 4 hour bearish pin bar after breaking through trend line support in the early hours of the European session. This support has now become resistance, made evident by the rejection that just occurred on the 4 hour time frame.
Summary: Opportunity to trade the 4 hour bearish pin bar at new resistance. Key support comes in at 90.23 with a final target being the range low at 89.70.