USDJPY approaching major support, remain bullish
Buy above 109.80. Stop loss at 108.67. Take profit at 111.59.
Reason for the trading strategy (technically):
We remain bullish looking to buy on dips above 109.80 support (Fibonacci extension, Fibonacci retracement, bullish divergence) for a push up to at least 111.59 resistance (Fibonacci retracement, horizontal overlap resistance).
RSI (34) sees bullish divergence signalling that a bounce is impending. The previous occurrence of such a bullish divergence led to a huge bullish rally.
Correlation analysis: We are seeing JPY weakness across the board with bounces expected on USDJPY, AUDJPY and EURJPY.
Reason for the trading strategy (technically):
We remain bullish looking to buy on dips above 109.80 support (Fibonacci extension, Fibonacci retracement, bullish divergence) for a push up to at least 111.59 resistance (Fibonacci retracement, horizontal overlap resistance).
RSI (34) sees bullish divergence signalling that a bounce is impending. The previous occurrence of such a bullish divergence led to a huge bullish rally.
Correlation analysis: We are seeing JPY weakness across the board with bounces expected on USDJPY, AUDJPY and EURJPY.