Reason for the trading strategy (technically):
Price has shot down and reached our profit target perfectly. We prepare to buy above major support at 110.25 ( , horizontal swing low support) for a push up to at least 111.15 resistance ( , horizontal overlap resistance).
(21,5,3) is seeing major support above 4% and we expect a strong bounce above this level.
Correlation analysis: We’re expecting overall JPY weakness with bounces expected on AUDJPY , USDJPY and EURJPY . Hence this falls very nicely into a correlated move.