EURJPY testing major support, prepare to buy for a strong bounce
Buy above 122.56. Stop loss at 122.30. Take profit at 123.63.
Reason for the trading strategy (technically):
Price is now testing major support at 122.56 (Fibonacci extension, horizontal swing low support, bullish divergence) and we expect a strong bounce up from this level to reach at least 123.63 resistance (Fibonacci extension, horizontal swing high resistance).
Stochastic (21,5,3) is seeing strong support above 4.1% and also displays bullish divergence vs price, signalling that a bounce is impending.
Reason for the trading strategy (technically):
Price is now testing major support at 122.56 (Fibonacci extension, horizontal swing low support, bullish divergence) and we expect a strong bounce up from this level to reach at least 123.63 resistance (Fibonacci extension, horizontal swing high resistance).
Stochastic (21,5,3) is seeing strong support above 4.1% and also displays bullish divergence vs price, signalling that a bounce is impending.