USDJPY forming a nice reversal, remain bullish
Buy above 111.11. Stop loss at 109.95. Take profit at 112.53.
Reason for the trading strategy (technically):
Price has continued to test our buying area and is starting to form a really nice reversal pattern with a recent bullish divergence formed. We remain bullish looking to buy above major support at 111.11 (Fibonacci retracement, Fibonacci extension, horizontal overlap support, Elliott wave structure, bullish divergence) for a corrective bounce up to at least 112.53 resistance (Fibonacci retracement, horizontal overlap resistance).
RSI (34) sees major support at 34% where we expect a corresponding bounce from. We can also see bullish divergence signalling that a strong reversal is impending.
Correlation analysis: We’re expecting JPY weakness with AUDJPY expecting a bounce too.
Reason for the trading strategy (technically):
Price has continued to test our buying area and is starting to form a really nice reversal pattern with a recent bullish divergence formed. We remain bullish looking to buy above major support at 111.11 (Fibonacci retracement, Fibonacci extension, horizontal overlap support, Elliott wave structure, bullish divergence) for a corrective bounce up to at least 112.53 resistance (Fibonacci retracement, horizontal overlap resistance).
RSI (34) sees major support at 34% where we expect a corresponding bounce from. We can also see bullish divergence signalling that a strong reversal is impending.
Correlation analysis: We’re expecting JPY weakness with AUDJPY expecting a bounce too.