Buy above 86.79. Stop loss at 86.49. Take profit at 87.36.
Reason for the trading strategy (technically):
Price has formed a cup and handle reversal pattern signalling that we’ll be seeing a strong bounce from here. We look to buy above 86.79 support (Fibonacci retracement, horizontal pullback support) for a push up to at least 87.36 resistance (Fibonacci retracement, horizontal pullback resistance).
Stochastic (34,5,3) is bouncing nicely off our 3.7% level with good upside potential.
Correlation analysis: We are seeing JPY weakness across the board with bounces expected on AUDJPY and USDJPY.
Reason for the trading strategy (technically):
Price has formed a cup and handle reversal pattern signalling that we’ll be seeing a strong bounce from here. We look to buy above 86.79 support (Fibonacci retracement, horizontal pullback support) for a push up to at least 87.36 resistance (Fibonacci retracement, horizontal pullback resistance).
Stochastic (34,5,3) is bouncing nicely off our 3.7% level with good upside potential.
Correlation analysis: We are seeing JPY weakness across the board with bounces expected on AUDJPY and USDJPY.