Buy above 110.25. Stop loss at 110.03. Take profit at 111.15.
Reason for the trading strategy (technically):
We remain bullish looking to buy above major support at 110.25 (Fibonacci extension, horizontal swing low support) for a push up to at least 111.15 resistance (Fibonacci retracement, horizontal overlap resistance).
Stochastic (21,5,3) is seeing major support above 4% and we expect a strong bounce above this level.
Correlation analysis: We’re expecting overall JPY weakness with bounces expected on USDJPY and EURJPY. Hence this falls very nicely into a correlated move.
Reason for the trading strategy (technically):
We remain bullish looking to buy above major support at 110.25 (Fibonacci extension, horizontal swing low support) for a push up to at least 111.15 resistance (Fibonacci retracement, horizontal overlap resistance).
Stochastic (21,5,3) is seeing major support above 4% and we expect a strong bounce above this level.
Correlation analysis: We’re expecting overall JPY weakness with bounces expected on USDJPY and EURJPY. Hence this falls very nicely into a correlated move.