Buy above 109.27. Stop loss at 110.28. Take profit at 108.71.
Reason for the trading strategy (technically):
Price has dropped strongly and has reached a major support level at 109.27 (Fibonacci retracement, Fibonacci extension, price gap) and we expect a correction above this level to at least 110.28 resistance (Fiboancci retracement, horizontal pullback resistance).
Stochastic (34,5,3) is seeing major support above 4.1% where we expect a strong bounce from.
Correlation analysis: We’re expecting overall JPY weakness with bounces expected on AUDJPY, USDJPY and EURJPY. Hence this falls very nicely into a correlated move.
Reason for the trading strategy (technically):
Price has dropped strongly and has reached a major support level at 109.27 (Fibonacci retracement, Fibonacci extension, price gap) and we expect a correction above this level to at least 110.28 resistance (Fiboancci retracement, horizontal pullback resistance).
Stochastic (34,5,3) is seeing major support above 4.1% where we expect a strong bounce from.
Correlation analysis: We’re expecting overall JPY weakness with bounces expected on AUDJPY, USDJPY and EURJPY. Hence this falls very nicely into a correlated move.