USDJPY approaching major resistance, prepare to sell
Intro: USDJPY is making a pullback to its previous breakout level, providing a good selling opportunity.
Sell below 107.60. Stop loss at 108.96. Take profit at 105.74.
Reason for the trading strategy (technically):
Price is approaching major resistance at 107.60 (Fibonacci retracement, horizontal pullback resistance, Fibonacci extension) and a strong reaction from here would push price down to 105.74 support (Fibonacci extension, horizontal swing low support) once again.
RSI (89) sees a long term descending resistance line provide downside pressure really well.
Sell below 107.60. Stop loss at 108.96. Take profit at 105.74.
Reason for the trading strategy (technically):
Price is approaching major resistance at 107.60 (Fibonacci retracement, horizontal pullback resistance, Fibonacci extension) and a strong reaction from here would push price down to 105.74 support (Fibonacci extension, horizontal swing low support) once again.
RSI (89) sees a long term descending resistance line provide downside pressure really well.