AUDJPY is testing major resistance and looks poised to drop strongly!
Sell below 83.35. Stop loss at 84.02. Take profit at 82.25.
Reason for the trading strategy (technically):
Price is testing major resistance at 83.35 (Fibonacci extension, Fibonacci retracement, horizontal overlap resistance, bearish divergence, descending resistance) and a strong reaction from here would push prices down to major support at 82.25 (Fibonacci retracement, horizontal swing low support, Fibonacci extension).
Stochastic (55,5,3) sees major resistance below 96% where a corresponding reaction could occur. We are also seeing bearish divergence vs price signalling that a reversal is impending.
Sell below 83.35. Stop loss at 84.02. Take profit at 82.25.
Reason for the trading strategy (technically):
Price is testing major resistance at 83.35 (Fibonacci extension, Fibonacci retracement, horizontal overlap resistance, bearish divergence, descending resistance) and a strong reaction from here would push prices down to major support at 82.25 (Fibonacci retracement, horizontal swing low support, Fibonacci extension).
Stochastic (55,5,3) sees major resistance below 96% where a corresponding reaction could occur. We are also seeing bearish divergence vs price signalling that a reversal is impending.