EURJPY forming a nice reversal pattern, remain bearish
Sell below 130.07. Stop loss at 130.42. Take profit at 128.92.
Reason for the trading strategy (technically):
Price reversed nicely yesterday and is dropping nicely. We prepare to sell below resistance at 130.07 (Fibonacci retracement, horizontal overlap resistance, bearish price action, bearish divergence) for a push down to at least 128.92 support (Fibonacci retracement, horizontal swing low support).
Stochastic (34,5,3) is seeing a nice reversal below 94% and has bearish divergence vs price signalling that a strong reversal is fast approaching.
Correlation analysis: We’re seeing JPY strength with drops on AUDJPY, EURJPY and USDJPY.
Reason for the trading strategy (technically):
Price reversed nicely yesterday and is dropping nicely. We prepare to sell below resistance at 130.07 (Fibonacci retracement, horizontal overlap resistance, bearish price action, bearish divergence) for a push down to at least 128.92 support (Fibonacci retracement, horizontal swing low support).
Stochastic (34,5,3) is seeing a nice reversal below 94% and has bearish divergence vs price signalling that a strong reversal is fast approaching.
Correlation analysis: We’re seeing JPY strength with drops on AUDJPY, EURJPY and USDJPY.