The AUDJPY has suffered a pullback. A return to recent highs gives us the possibility of a double top. A bounce off the recent low gives us the possibility of the a double bottom. There may be more complex structures at play as well, but you get the idea.
This is risk point. This is an opportunity point.
If you get in, say with a long position right now, you don't know if it will turn around. You don't know if the recent upward trend will survive. Sure, you'll set a stop, but you don't really want to throw money away at stops needlessly.
You have to look for clues as to the market's probable direction. For example, you might notice a pattern on the candlestick chart, the stochastic, RSI, or perhaps some other indicator.
I'm long term bullish, but that doesn't mean the market can't confound me long enough to relieve me of my money if I'm foolish about it. There's an opportunity out there right now. Who's going to figure out what it is and who's going to suffer a loss for it?
Hey, seriously, there is no shame in staying on the sidelines and waiting for whatever signals you follow if there aren't any there now.
EDIT: By the way, I see the price dropping below support, so I think we're going to see a bit of downward action before we return to optimism.
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