On Sept. 19, 2021, I posted on social media: “ AUD/JPY -- watch for selling opportunities as long as price remains below 80.51. Looking for a move lower towards 79.46 – 79.21 area. “

The AUD/JPY pair may be getting ready for another possible move lower. In the one-hour chart below, the pair has been moving lower and forming a lower low/lower high sequence, signaling to traders that the pair is on a downtrend. A bearish trend continuation divergence pattern (black) formed at the Sept. 17 high, which also signaled for more downside.

What may be adding bearish sentiment is how the Tenkan (blue) pattern has crossed below the Kijun (pink) pattern, price is below the Ichimoku cloud pattern, and the future Kumo cloud (grey) pattern is bearish. More bearish confirmation may be added when the Chikou (black dotted) pattern moves below previous candles -- and, at the moment, it is currently on them.

I would say to watch for any selling opportunities if the pair moves higher towards the 80.01 – 80.21 sell zone with stops at 80.51. If price hits the sell zone, look for a move lower towards the 79.46 – 79.21 target zone. Only time will tell what AUD/JPY will do, but we remain bearish for now.

AUD/JPY One-Hour Chart: Sept. 19, 2021

Like any strategy, there will be times when the approach fails, so proper money/risk management should always be used on every trade.