USDJPY reacting off major resistance, remain bearish
Sell below 110.90. Stop loss at 111.84. Take profit at 108.52.
Reason for the trading strategy (technically):
Price has risen to our selling area as expected. We remain bearish below major resistance at 110.90 (Fibonacci retracement, multiple horizontal swing high resistance) and we expect a strong reaction from this level to push price down to 108.52 support (Fibonacci retracement, horizontal overlap support).
Stochastic (34,3,1) is seeing major resistance below 97% and we expect a drop from this level soon, similar to the one we’re expecting on price.
Reason for the trading strategy (technically):
Price has risen to our selling area as expected. We remain bearish below major resistance at 110.90 (Fibonacci retracement, multiple horizontal swing high resistance) and we expect a strong reaction from this level to push price down to 108.52 support (Fibonacci retracement, horizontal overlap support).
Stochastic (34,3,1) is seeing major resistance below 97% and we expect a drop from this level soon, similar to the one we’re expecting on price.