AUDJPY has produced a Daily engulfing candle yesterday. If we flip over to the H4 chart, we see that the price has been making higher highs after producing a Double bottom. As things stand with AUDJPY, the price might make another bullish move. Let us have a look at the H4 chart of AUDJPY...  

As we can see that the price produced a beautiful Double bottom and then an Engulfing H4 candle. After that the price has been making higher highs as far as the H4 chart is concerned. So far the pair has not had any consolidation. However, the level of 87.415 seems to work as a resistance so far. If the price starts having consolidation from there, and the level of 87.000 works as a Support level, then we should wait for a breakout at 87.415 to take long entries on AUDJPY. Let us have a look at the summary of the trade

• Buy Stop Order:  87.415
• Stop Loss Level: 87.000
• Take Profit Target: 88.315

As we can see, the risk and reward ratio of this signal is almost 1:2. This is going to be the 2^nd wave of the trend. The third wave offers a risk and reward ratio of 1:3 whereas the first wave offers only 1:1. This is one of the parameters of choosing pairs to take entry. As a trader, we have to have a very good understanding on the wave. There is a theory called “Elliott wave” in the financial market. Do a research on that. You will surely be able to find out, which pair to make a target to take entry in a trading day. Comment below if you have questions on this trade and please let us know if you made money if this trade signal. Good luck! You can also take a look at our previous (and most likely profitable) Free Forex Trading Signals Here. We hope that you enjoy our Free Forex Trading Signal today:  AUDJPY Free Forex Trading Signals - 2nd March 2017