AUDJPY has rallied with aggressive bullish price action and punched straight through some overhead resistance. Price has move so aggressively it is sitting at extremes from the mean value leaving that price – mean value gap.
This market is mostly likely going to correct back to the level it broke through and retest it as support. Today we’ve already seen the market open with a strong h4 bearish rejection candle hinting a correctional move may have started. Some War Room members are taking the h4 signal as a mean reversion trade to catch the corrective move back to the mean.
Looking at the bigger picture, we will be waiting for a bullish price action signal to form to confirm the previous resistance level will act as support. If this scenario happens we can anticipate longer term bullish trend movement on the AUDJPY and position in accordingly.