AUD/JPY potential long opportunity as the market structure turns bearish

The market structure on AUD/JPY is turning bearish as the price has been dropping continuously for the last three weeks. Yesterday the price dropped below the key support level of 97.400 and closed below this level.

Currently, the price is making a correction after the recent drop and will likely retrace back to the 97.400 level which now will act as strong resistance and will prevent the price from going up. The price is making long bearish candles with fair value gaps, imbalance and lower lows and the price is likely to drop further after retracement.

I am recommending the 97.450 level for short entries as this is a strong resistance level. Moreover, there is a bearish order block around the same level and 0.786 Fibonacci level. The price is expected to drop to 95.50 support level.

The Bank of Japan has once again vowed to end the negative interest rates policy which will strengthen the Japanese yen and will push the price of AUD/JPY down. Moreover, the CPI data will be published on the USD tomorrow which will possibly impact the price of AUD/JPY.

• The price of AUD/JPY is dropping continuously since the last three weeks and market structure has turned bearish.
• The price will probably drop to the 95.50 support level in the coming days.
• Multiple take-profit levels have been added to secure profit along the way.
• The risk-to-reward ratio on this trade is 1:35.
• The entry and stop-loss prices have been placed at secure levels with the least probability of getting hit.
• Good luck

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