Buy above 87.04. Stop loss at 86.85. Take profit at 87.52.
Reason for the trading strategy (technically):
Price has continued to drop strongly since yesterday. The key now is to wait for a major support level to buy from. We are seeing major support at 87.04 (multiple Fibonacci extensions) and expect to see a short term corrective bounce above this level to at least 87.52 resistance (Fibonacci retracement, horizontal pullback resistance).
Stochastic (34,5,3) is seeing major support at 3.7% where we expect a corresponding bounce from.
Correlation analysis: We are seeing JPY weakness across the board with bounces expected on EURJPY, AUDJPY and USDJPY.
Reason for the trading strategy (technically):
Price has continued to drop strongly since yesterday. The key now is to wait for a major support level to buy from. We are seeing major support at 87.04 (multiple Fibonacci extensions) and expect to see a short term corrective bounce above this level to at least 87.52 resistance (Fibonacci retracement, horizontal pullback resistance).
Stochastic (34,5,3) is seeing major support at 3.7% where we expect a corresponding bounce from.
Correlation analysis: We are seeing JPY weakness across the board with bounces expected on EURJPY, AUDJPY and USDJPY.