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Using %R on AUD/JPY

Everything you need to know about applying the Williams %R to AUD/JPY — default settings, signals, and when this indicator actually works vs when it misleads you.

Reviewed by the Candleread desk · Updated 2026-04-09

The short answer

The Williams %R (%R) is a momentum indicator rated intermediate. Applied to AUD/JPY (minor pair, 1.5-pip spread, 85-pip daily range), the default settings are Period: 14. Overbought: −20. Oversold: −80. Best timeframes: M15, H1, H4. Key signals: Buy when %R crosses above −80 (leaving oversold). Sell when %R crosses below −20 (leaving overbought). Best used as a timing tool within a confirmed trend, not as a standalone signal.

What Is the Williams %R?

Similar to the Stochastic oscillator but inverted — ranges from 0 to −100. Overbought above −20, oversold below −80. Fast and reactive. %R = (Highest High − Close) / (Highest High − Lowest Low) × −100. It measures where the current close sits within the recent high-low range. More sensitive than RSI — good for timing entries in confirmed trends.

%R Settings for AUD/JPY

Here are the default and recommended settings for using %R on AUD/JPY:

  • •Default settings: Period: 14. Overbought: −20. Oversold: −80.
  • •Category: momentum indicator
  • •Difficulty: intermediate
  • •Best timeframes: M15, H1, H4
  • •AUD/JPY spread: 1.5 pips — tight enough for most indicator-based entries
  • •AUD/JPY daily range: 85 pips

%R Signals on AUD/JPY

Buy when %R crosses above −80 (leaving oversold). Sell when %R crosses below −20 (leaving overbought). Best used as a timing tool within a confirmed trend, not as a standalone signal. On AUD/JPY, trade these signals during the Asian session for the cleanest price action and tightest spreads. Outside peak hours, %R signals are noisier because volume thins and spreads widen.

How to Trade AUD/JPY with %R

  1. 1

    Add %R to your chart

    Open AUD/JPY on your preferred timeframe (M15 or H1 or H4 recommended). Apply the Williams %R with default settings: Period: 14. Overbought: −20. Oversold: −80.

  2. 2

    Confirm the trend on a higher timeframe

    Before acting on any %R signal, check one timeframe up for the prevailing trend. Trade %R signals in the direction of the higher-timeframe trend for higher win rates.

  3. 3

    Wait for a clear %R signal

    Don't anticipate — wait for the signal to complete. Buy when %R crosses above −80 (leaving oversold).

  4. 4

    Set stop and target before entering

    Use the position size calculator. Risk 1% per trade. On AUD/JPY with a 85-pip daily range, typical stops are 17–34 pips.

  5. 5

    Manage and journal

    Move stop to breakeven after 1R. Let the trade run toward 2–3R. Journal the %R signal quality so you build data on which signals work best for AUD/JPY.

When %R Fails on AUD/JPY

No indicator works in every condition. %R is a momentum indicator, which means it performs best in range-to-trend transitions and struggles when momentum is flat. On AUD/JPY, avoid using %R during the Asian session (for this pair) and during the first 5 minutes of major news releases when price spikes are noise, not signals.

Key takeaways

  • ✓%R on AUD/JPY: momentum indicator, intermediate difficulty
  • ✓Default settings: Period: 14. Overbought: −20. Oversold: −80.
  • ✓Best timeframes: M15, H1, H4
  • ✓Trade signals during Asian session for best results
  • ✓Always combine %R with price action and higher-timeframe trend confirmation

Frequently asked

What is the best %R setting for AUD/JPY?+
The default setting (Period: 14. Overbought: −20. Oversold: −80.) works well for most traders on AUD/JPY. Some scalpers use shorter periods for faster signals, but faster settings generate more false signals. Start with the default and only adjust after you've logged 50+ trades with data on signal quality.
Does %R work on AUD/JPY?+
Yes. AUD/JPY is a minor pair with 85-pip daily range and 1.5-pip spread. %R signals are reliable on this pair during the Asian session on M15/H1/H4 timeframes.
Should I use %R alone or with other indicators?+
Never use any single indicator alone. Combine %R with price action (support/resistance, candlestick patterns) and one confirmation indicator from a different category. Good combinations with %R: STOCHASTIC, RSI.
What timeframe is best for %R on AUD/JPY?+
M15, H1, H4 are the best timeframes for %R. On AUD/JPY, the M15 chart during the Asian session gives the cleanest signals.

Keep reading

STOCHASTIC on AUD/JPY

RSI on AUD/JPY

%R on AUD/USD

%R on USD/JPY

Position size calculator