Reason for the trading strategy (technically):
Price is finally starting to bounce up nicely and a exit has triggered further strength for a push up. We remain looking to buy above major support at 111.11 ( , , horizontal overlap support, structure, ) for a corrective bounce up to at least 112.53 resistance ( , horizontal overlap resistance).
(34) sees major support at 34% where we expect a corresponding bounce from. We can also see signalling that a strong reversal is impending. A recent exit from our long term descending resistance-turned-support line also adds further strength to our move.
Correlation analysis: We’re expecting JPY weakness with AUDJPY expecting a bounce too.