USDJPY Is Testing Its Resistance, Prepare For a Drop
Sell below 109.27. Stop loss at 109.88. Take profit at 107.94.
Reason for the trading strategy (technically):
USDJPY is testing its resistance at 109.27 (Long term 61.8% Fibonacci extension, 50% Fibonacci retracement, 78.6% Fibonacci retracement, horizontal swing high resistance) where we expect to see a drop to its support at 107.94 (100% Fibonacci extension, 38.2% Fibonacci retracement, 61.8% Fibonacci retracement). We do have to be cautious of the intermediate support at 108.47 (38.2% Fibonacci retracement, horizontal overlap support).
Stochastic (55, 5, 3) is testing its resistance at 99% where a corresponding reaction is expected.
Reason for the trading strategy (technically):
USDJPY is testing its resistance at 109.27 (Long term 61.8% Fibonacci extension, 50% Fibonacci retracement, 78.6% Fibonacci retracement, horizontal swing high resistance) where we expect to see a drop to its support at 107.94 (100% Fibonacci extension, 38.2% Fibonacci retracement, 61.8% Fibonacci retracement). We do have to be cautious of the intermediate support at 108.47 (38.2% Fibonacci retracement, horizontal overlap support).
Stochastic (55, 5, 3) is testing its resistance at 99% where a corresponding reaction is expected.