Intro: EURJPY is testing strong descending resistance presenting us with a good opportunity to enter this short trade.
Sell below 131.24. Stop loss at 132.26. Take profit at 129.45.
Reason for the trading strategy (technically):
Price is testing strong resistance at 131.24 (Multiple Fibonacci retracement, Fibonacci extension, descending resistance) and a strong reaction could occur at this level to push price down to 129.45 support (Fibonacci extension, horizontal swing low support).
Stochastic (34,5,3) is seeing major resistance at 97% where a corresponding reaction could occur.
Sell below 131.24. Stop loss at 132.26. Take profit at 129.45.
Reason for the trading strategy (technically):
Price is testing strong resistance at 131.24 (Multiple Fibonacci retracement, Fibonacci extension, descending resistance) and a strong reaction could occur at this level to push price down to 129.45 support (Fibonacci extension, horizontal swing low support).
Stochastic (34,5,3) is seeing major resistance at 97% where a corresponding reaction could occur.