Buy above 81.90. Stop loss at 81.67. Take profit at 82.90.
Reason for the trading strategy (technically):
Price has dropped perfectly to our buying area and bounced off perfectly. We remain bullish above major support at 81.90 (Fibonacci extension, horizontal swing low support, bullish divergence) and we expect a strong bounce above this level to at least 82.90 resistance (Fibonacci retracement, horizontal swing high resistance).
Stochastic (34,5,3) is seeing strong support above the 8% level and also sees bullish divergence vs price signalling that a bounce is impending.
Correlation analysis: We’re expecting overall JPY strength today across USDJPY and EURJPY, hence it is best to exercise caution on this trade.
Reason for the trading strategy (technically):
Price has dropped perfectly to our buying area and bounced off perfectly. We remain bullish above major support at 81.90 (Fibonacci extension, horizontal swing low support, bullish divergence) and we expect a strong bounce above this level to at least 82.90 resistance (Fibonacci retracement, horizontal swing high resistance).
Stochastic (34,5,3) is seeing strong support above the 8% level and also sees bullish divergence vs price signalling that a bounce is impending.
Correlation analysis: We’re expecting overall JPY strength today across USDJPY and EURJPY, hence it is best to exercise caution on this trade.