Reason for the trading strategy (technically):
Price has dropped strongly and is now testing support at 123.15 ( , , horizontal swing low support, ) and we expect to see a strong bounce above this level to at least 124.15 resistance ( , horizontal overlap resistance).
(21,5,3) is seeing strong support above 4.7% and also sees signalling that a bounce is impending.
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.