In this lesson we consider the daily chart for the AUD/JPY which offers a complete view of the price cycle from a primary bullish trend higher into the congestion phase, and development of the bearish primary trend lower. The key area is the congestion phase which develops and how the constant testing and retesting create the levels of resistance above and support below. Whether you choose to take this as a reversal trade and enter early, or wait for the development of the trend and enter later is a personal decision and only one you can make.
Alternatively you can enter on the breakout. All are perfectly valid, and the chart really describes the price action perfectly and the reversal from a pimary move higher to a primary move lower.