USDJPY breaking out of our channel, watch for a strong drop
Sell below 109.77. Stop loss at 110.29. Take profit at 108.53.
Reason for the trading strategy (technically):
Price has broken out of our channel triggering a bearish exit below 109.77 resistance (Fibonacci retracement, horizontal swing high resistance) for a strong push down to 108.53 support (Fibonacci extension, horizontal swing low support).
Stochastic (55,5,3) is seeing a nice reaction off our 96% resistance signalling that a reversal is occurring. We can also see good downside potential for the rest of our move.
Reason for the trading strategy (technically):
Price has broken out of our channel triggering a bearish exit below 109.77 resistance (Fibonacci retracement, horizontal swing high resistance) for a strong push down to 108.53 support (Fibonacci extension, horizontal swing low support).
Stochastic (55,5,3) is seeing a nice reaction off our 96% resistance signalling that a reversal is occurring. We can also see good downside potential for the rest of our move.