EURJPY forming a nice reversal pattern, remain bearish
Sell below 130.07. Stop loss at 130.35. Take profit at 128.92.
Reason for the trading strategy (technically):
Price is approaching major resistance at 130.07 (Fibonacci retracement, Fibonacci extension, bearish divergence) and we expect to see a strong reaction off this level for a drop to at least 128.92 support (Fibonacci retracement, horizontal swing low support).
Stochastic (34,5,3) is seeing major resistance below 94% and also sees bearish divergence vs price signalling that a reversal is impending.
Correlation analysis: We’re seeing JPY strength with drops on AUDJPY, EURJPY and USDJPY.
Reason for the trading strategy (technically):
Price is approaching major resistance at 130.07 (Fibonacci retracement, Fibonacci extension, bearish divergence) and we expect to see a strong reaction off this level for a drop to at least 128.92 support (Fibonacci retracement, horizontal swing low support).
Stochastic (34,5,3) is seeing major resistance below 94% and also sees bearish divergence vs price signalling that a reversal is impending.
Correlation analysis: We’re seeing JPY strength with drops on AUDJPY, EURJPY and USDJPY.