AUDJPY Right On Major Resistance, Time To Sell
AUDJPY is testing major resistance and looks poised to drop strongly!
Sell below 83.35. Stop loss at 84.02. Take profit at 82.25.
Reason for the trading strategy (technically):
Price is testing major resistance at 83.35 (Fibonacci extension, Fibonacci retracement, horizontal overlap resistance, bearish divergence, descending resistance) and a strong reaction from here would push prices down to major support at 82.25 (Fibonacci retracement, horizontal swing low support, Fibonacci extension).
Stochastic (55,5,3) sees major resistance below 96% where a corresponding reaction could occur. We are also seeing bearish divergence vs price signalling that a reversal is impending.
Sell below 83.35. Stop loss at 84.02. Take profit at 82.25.
Reason for the trading strategy (technically):
Price is testing major resistance at 83.35 (Fibonacci extension, Fibonacci retracement, horizontal overlap resistance, bearish divergence, descending resistance) and a strong reaction from here would push prices down to major support at 82.25 (Fibonacci retracement, horizontal swing low support, Fibonacci extension).
Stochastic (55,5,3) sees major resistance below 96% where a corresponding reaction could occur. We are also seeing bearish divergence vs price signalling that a reversal is impending.