The AUD/JPY retreat from 89.00 resistance area last week, closed lower at 87.92. Prior to this turn down from resistance, the pair has been rising for more than one year from 72.42 on June 2016. As you can see on my weekly chart below, we have a bearish pin bar formation after rejection to move above 89.00. We also know that the last time price rejected to move above 89.00 on December 2016, the pair fell more than 1600 pips.
Given those facts, I have a trading plan which is probably one of the best trading opportunities in 2017.
Sell at 88.40. Target minimum 300 pips. Stop loss above 89.40
We have a lot of space to the downside, so actually the bearish target can be as far as 1000 pips or more. So from a risk/reward ratio point of view, it is a great place to sell!
