USDJPY has shifted momentum strongly towards being bullish and we’re at a good level to enter a long trade.
Buy above 106.35. Stop loss at 105.40. Take profit at 108.45.
Reason for the trading strategy (technically):
Price has made a bullish exit of our long term descending resistance-turned-support line meaning our momentum is shifting from bearish to bullish. We look to buy above major support at 106.35 (Fibonacci retracement, horizontal overlap support) for a strong push up to 108.45 resistance (Fibonacci retracement, horizontal pullback resistance). We do have to be cautious of intermediate resistance at 107.82 (Fibonacci retracement, horizontal swing high resistance).
RSI (89) sees a bullish exit on RSI signalling a shift in momentum from bearish to bullish too.
Buy above 106.35. Stop loss at 105.40. Take profit at 108.45.
Reason for the trading strategy (technically):
Price has made a bullish exit of our long term descending resistance-turned-support line meaning our momentum is shifting from bearish to bullish. We look to buy above major support at 106.35 (Fibonacci retracement, horizontal overlap support) for a strong push up to 108.45 resistance (Fibonacci retracement, horizontal pullback resistance). We do have to be cautious of intermediate resistance at 107.82 (Fibonacci retracement, horizontal swing high resistance).
RSI (89) sees a bullish exit on RSI signalling a shift in momentum from bearish to bullish too.