EURJPY on major support, time to play a corrective bounce
Buy above 131.77. Stop loss at 131.52. Take profit at 132.46.
Reason for the trading strategy (technically):
Price has dropped strongly from last week and is now testing major support at 131.77 (Fibonacci extension, horizontal swing low support) and we expect to see a strong corrective bounce above this level to push price up to at least 132.46 resistance (Fibonacci retracement, horizontal overlap resistance).
Stochastic (55,3,1) is seeing strong support above 2.1% where we expect a bounce from.
Reason for the trading strategy (technically):
Price has dropped strongly from last week and is now testing major support at 131.77 (Fibonacci extension, horizontal swing low support) and we expect to see a strong corrective bounce above this level to push price up to at least 132.46 resistance (Fibonacci retracement, horizontal overlap resistance).
Stochastic (55,3,1) is seeing strong support above 2.1% where we expect a bounce from.