AUDJPY right on major support, remain bullish
Buy above 87.28. Stop loss at 87.03. Take profit at 87.75.
Reason for the trading strategy (technically):
Price is now testing our major support at 87.28 (Fibonacci extension, Elliott wave structure, swing low support, bullish divergence) and we expect to see a strong bounce above this level to push price up to at least 87.75 resistance (Fibonacci retracement, breakout pullback resistance).
Stochastic (34,3,1) is seeing strong support above 2.2% and we expect to see a corresponding bounce above this level. We can also see bullish divergence vs price signalling that a bounce is impending.
Reason for the trading strategy (technically):
Price is now testing our major support at 87.28 (Fibonacci extension, Elliott wave structure, swing low support, bullish divergence) and we expect to see a strong bounce above this level to push price up to at least 87.75 resistance (Fibonacci retracement, breakout pullback resistance).
Stochastic (34,3,1) is seeing strong support above 2.2% and we expect to see a corresponding bounce above this level. We can also see bullish divergence vs price signalling that a bounce is impending.