The following is the daily chart of AUDJPY as of Jan. 26th around 4 AM EST. If you observe the graph you can see that there is a strong resistance trend line which was broken earlier and now the graph is coming towards the resistance line and now this resistance may act as a support trend line. Moreover the stochastics has reached the oversold region which is below 20. The CCI also reached the oversold region.

I think its a good opportunity to enter a long trade if a bullish engulfing candlestick pattern is formed or a doji with a small or no body at all is formed at this point.

What do you guys think of this?

audjpy technical analysis