USDJPY reacting nicely off our selling area, remain bearish
Sell below 114.32. Stop loss at 115.09. Take profit at 111.77.
Reason for the trading strategy (technically):
Price has rose and reacted off our selling area as expected. We remain bearish below major resistance at 114.32 (Fibonacci extension, horizontal swing high resistance, bearish divergence) and we expect to see a strong reaction from this level to push price down to at least 111.77 support (Fibonacci retracement, horizontal overlap support).
Stochastic (55,5,3) is seeing major resistance below 95% and we expect a drop from this level soon. We can also see bearish divergence vs price signalling that a reversal is fast impending.
Reason for the trading strategy (technically):
Price has rose and reacted off our selling area as expected. We remain bearish below major resistance at 114.32 (Fibonacci extension, horizontal swing high resistance, bearish divergence) and we expect to see a strong reaction from this level to push price down to at least 111.77 support (Fibonacci retracement, horizontal overlap support).
Stochastic (55,5,3) is seeing major resistance below 95% and we expect a drop from this level soon. We can also see bearish divergence vs price signalling that a reversal is fast impending.