FX.co ★ AUD/JPY

*AUDJPY 1D: Inverse Head & Shoulders Buy Setup to 115.50* *Current Price: 113.385* *According to my analysis* AUDJPY 1D is forming a classic *Inverse Head & Shoulders* reversal pattern. Price is currently at *113.385* and sitting near the neckline. The chart shows *Left Shoulder* around 112.30, *Head* at 111.50, and *Right Shoulder* forming now at 112.30. The green circle marks "waiting for buy setup" right at the right shoulder. The black trendline is the neckline around *113.50*. A daily close above it confirms the pattern. The red channel above at *114.50 - 115.50* has rejected price 3 times before, marked by the black arrows. That’s the measured move target if the inverse H&S plays out. *Structure Breakdown* 1. *Inverse H&S Pattern*: Textbook reversal after a downtrend. Head is lower than both shoulders. Neckline resistance at 113.50 is the key level to break. 2. *Neckline 113.40 - 113.60*: A daily close above this confirms the buy. Targets are projected from head to neckline, roughly 2.00 big figures. 3. *Target Zone 115.00 - 115.50*: Top of the descending channel that has capped price multiple times. This is also where previous sellers stepped in. 4. *Invalidation*: The setup fails if we get a daily close below 111.80. That breaks the right shoulder and opens a drop to 110.50. Support also sits at 112.30 horizontal level. *Risk Management and Trading Discipline* AUDJPY 1D swings are big. Protect capital first. 1. *Risk 1% max per trade*. Size from SL, not from hope. 2. *Long Plan*: Entry on break + retest of 113.50 neckline | SL 112.20 below right shoulder | TP1 114.50 | TP2 115.50 channel top. 3. *No Early Entry Rule*: 113.385 is right under resistance. Wait for confirmation. Don’t buy the rumor. 4. *Discipline Rules*: No trading news spikes. Move SL to BE at +1R. Journal: Did I wait for neckline break or anticipate? *Potential Scenarios* *Bullish Scenario*: Close above 113.50, retest holds, then run to 114.50 → 115.50. Inverse H&S completes. *Bearish Scenario*: Rejection at 113.50, fails to hold 112.30, drops to 111.50 → 110.50. Pattern invalid.

*Conclusion and Outlook* 1D bias is *bullish pending confirmation*. Most likely path: price consolidates at 113.50, breaks neckline, then targets 115.50. Key rule: Wait for the daily close above 113.50. Trade the confirmation, not the anticipation.