AUDJPY dropping nicely, remain bearish for a further drop
Sell below 88.92. Stop loss at 89.35. Take profit at 88.17.
Reason for the trading strategy (technically):
Price has dropped nicely from yesterday and we remain bearish below 88.92 resistance (Fibonacci extension, Fibonacci retracement, Elliott wave theory, bearish divergence) for a drop towards 88.17 support (Fibonacci retracement, horizontal overlap support).
Stochastic (34,5,3) is seeing major resistance below 95% where we expect a reaction from soon. We can also see bearish divergence vs price signalling that a reversal is impending.
Correlation analysis: We are seeing JPY strength with AUDJPY, EURJPY and USDJPY expecting drops.
Reason for the trading strategy (technically):
Price has dropped nicely from yesterday and we remain bearish below 88.92 resistance (Fibonacci extension, Fibonacci retracement, Elliott wave theory, bearish divergence) for a drop towards 88.17 support (Fibonacci retracement, horizontal overlap support).
Stochastic (34,5,3) is seeing major resistance below 95% where we expect a reaction from soon. We can also see bearish divergence vs price signalling that a reversal is impending.
Correlation analysis: We are seeing JPY strength with AUDJPY, EURJPY and USDJPY expecting drops.