USDJPY Is Approaching Resistance, Sell On Strength!
Sell below 107.98. Stop Loss at 109.77. Take Profit at 104.65.
Reason for the trading strategy:
Price is approaching our first major resistance at 107.98 (horizontal overlap resistance, 100% Fibonacci extension, 61.8% Fibonacci retracement). A strong reaction might occur below this level, pushing price down to our major support at 104.65 (horizontal swing low support, 61.8% Fibonacci extension). A breakout below our intermediate support at 106.67 (horizontal overlap support, 38.2% Fibonacci retracement) might provide the bearish acceleration to our take profit level.
Stochastic (34,5,3) is also approaching our major resistance and a reaction off this level might be a good precursor for a potential drop in price.
Reason for the trading strategy:
Price is approaching our first major resistance at 107.98 (horizontal overlap resistance, 100% Fibonacci extension, 61.8% Fibonacci retracement). A strong reaction might occur below this level, pushing price down to our major support at 104.65 (horizontal swing low support, 61.8% Fibonacci extension). A breakout below our intermediate support at 106.67 (horizontal overlap support, 38.2% Fibonacci retracement) might provide the bearish acceleration to our take profit level.
Stochastic (34,5,3) is also approaching our major resistance and a reaction off this level might be a good precursor for a potential drop in price.