Buy above 110.32. Stop loss at 109.74. Take profit at 111.59.
Reason for the trading strategy (technically):
Price has bounced perfectly off our buying area and has started to shoot up nicely towards our profit target. We can also see that is has made a bullish exit from a previous descending resistance-turned-support line. We remain bullish looking to buy above 110.32 support (Fibonacci retracement, pullback support) for a further push up towards 111.59 resistance (Fibonacci retracement, horizontal overlap resistance).
RSI (34) sees bullish divergence and also sees a bullish exit of a descending resistance-turned-support line.
Correlation analysis: We are seeing JPY weakness across the board with bounces expected on EURJPY, AUDJPY and USDJPY.
Price has bounced perfectly off our buying area and has started to shoot up nicely towards our profit target. We can also see that is has made a bullish exit from a previous descending resistance-turned-support line. We remain bullish looking to buy above 110.32 support (Fibonacci retracement, pullback support) for a further push up towards 111.59 resistance (Fibonacci retracement, horizontal overlap resistance).
RSI (34) sees bullish divergence and also sees a bullish exit of a descending resistance-turned-support line.
Correlation analysis: We are seeing JPY weakness across the board with bounces expected on EURJPY, AUDJPY and USDJPY.