Buy above 129.55. Stop loss at 129.34. Take profit at 130.07.
Reason for the trading strategy (technically):
Price has continued to drop from yesterday. We’re now on major support at 129.55 (Fibonacci extension, horizontal swing low support, bullish price action) and we expect to see an intermediate corrective bounce above this level for price to rise to at least 130.07 resistance (Fibonacci retracement, horizontal pullback resistance).
Stochastic (34,5,3) is seeing strong support above 7.3% and we expect to see a corresponding bounce above this level.
Correlation analysis: We are seeing JPY weakness across the board with bounces expected on EURJPY, AUDJPY and USDJPY.
Reason for the trading strategy (technically):
Price has continued to drop from yesterday. We’re now on major support at 129.55 (Fibonacci extension, horizontal swing low support, bullish price action) and we expect to see an intermediate corrective bounce above this level for price to rise to at least 130.07 resistance (Fibonacci retracement, horizontal pullback resistance).
Stochastic (34,5,3) is seeing strong support above 7.3% and we expect to see a corresponding bounce above this level.
Correlation analysis: We are seeing JPY weakness across the board with bounces expected on EURJPY, AUDJPY and USDJPY.