Sell below 130.07. Stop loss at 130.42. Take profit at 128.92.
Reason for the trading strategy (technically):
Price continued its drop yesterday and has reached our profit target perfectly. We prepare to buy above major support at 130.07 (Fibonacci extension, horizontal swing low support) for a bounce up to at least 130.07 resistance (Fibonacci retracement, horizontal pullback resistance).
Stochastic (21,5,3) is testing major support at 7.1% and we expect a corresponding bounce from that level.
Correlation analysis: We’re seeing JPY strength with drops on AUDJPY and EURJPY.
Reason for the trading strategy (technically):
Price continued its drop yesterday and has reached our profit target perfectly. We prepare to buy above major support at 130.07 (Fibonacci extension, horizontal swing low support) for a bounce up to at least 130.07 resistance (Fibonacci retracement, horizontal pullback resistance).
Stochastic (21,5,3) is testing major support at 7.1% and we expect a corresponding bounce from that level.
Correlation analysis: We’re seeing JPY strength with drops on AUDJPY and EURJPY.