Buy above 87.80. Stop loss at 87.48. Take profit at 88.25.
Reason for the trading strategy (technically):
Price has bounced perfectly and reached our profit target for the 5th time in a row. We remain bullish looking to buy on the break of our 87.80 resistance (Fibonacci retracement, horizontal overlap resistance). Once price has broken this level with strength, we look to play the rise to 88.25 resistance (Fibonacci retracement, Fibonacci extension, horizontal swing high resistance).
RSI (34) has broken out of a descending resistance-turned-support line signalling that a change in momentum is fast approaching.
Correlation analysis: We are seeing JPY weakness across the board with bounces expected on EURJPY, AUDJPY and USDJPY.
Reason for the trading strategy (technically):
Price has bounced perfectly and reached our profit target for the 5th time in a row. We remain bullish looking to buy on the break of our 87.80 resistance (Fibonacci retracement, horizontal overlap resistance). Once price has broken this level with strength, we look to play the rise to 88.25 resistance (Fibonacci retracement, Fibonacci extension, horizontal swing high resistance).
RSI (34) has broken out of a descending resistance-turned-support line signalling that a change in momentum is fast approaching.
Correlation analysis: We are seeing JPY weakness across the board with bounces expected on EURJPY, AUDJPY and USDJPY.