USDJPY Reversed Nicely Off Resistance, Prepare For A Drop!
Sell below 110.90.
Stop loss 111.39.
Take profit at 109.95.
Reason for the trading strategy (technically):
USDJPY reversed nicely off its resistance at 110.90 (100% Fibonacci extension, 61.8% Fibonacci extension, horizontal swing high resistance) where we expect price to fall to its support at 109.53 (100% Fibonacci extension, 61.8% Fibonacci retracement, horizontal swing low support).
Stochastic (55, 5, 3) is approaching its resistance at 97% where it still has a lot of downside potential. We have also identified a bearish divergence with price which contributes to our bearish bias.
Stop loss 111.39.
Take profit at 109.95.
Reason for the trading strategy (technically):
USDJPY reversed nicely off its resistance at 110.90 (100% Fibonacci extension, 61.8% Fibonacci extension, horizontal swing high resistance) where we expect price to fall to its support at 109.53 (100% Fibonacci extension, 61.8% Fibonacci retracement, horizontal swing low support).
Stochastic (55, 5, 3) is approaching its resistance at 97% where it still has a lot of downside potential. We have also identified a bearish divergence with price which contributes to our bearish bias.