USDJPY remain bearish with key support broken
Sell below 112.65. Stop loss at 113.51. Take profit at 110.90.
Reason for the trading strategy (technically):
Price has broken our key support and dropped strongly towards our profit target. We’re still bearish on this move and we need to wait for price to make a retracement towards our sell entry before we take another position. We remain bearish below major resistance at 112.65 (Fibonacci retracement, pullback resistance) for a drop to at least 11.90 support (Fibonacci retracement, horizontal overlap support).
RSI (55) sees strong bearish divergence and is finally below our 50% resistance level signalling a strong change in momentum.
Reason for the trading strategy (technically):
Price has broken our key support and dropped strongly towards our profit target. We’re still bearish on this move and we need to wait for price to make a retracement towards our sell entry before we take another position. We remain bearish below major resistance at 112.65 (Fibonacci retracement, pullback resistance) for a drop to at least 11.90 support (Fibonacci retracement, horizontal overlap support).
RSI (55) sees strong bearish divergence and is finally below our 50% resistance level signalling a strong change in momentum.