USDJPY right on selling area, remain bearish
Sell below 112.65. Stop loss at 113.45. Take profit at 110.90.
Reason for the trading strategy (technically):
We remain bearish looking to sell below 112.65 resistance (Fibonacci retracement, horizontal overlap resistance, bearish divergence) for a further drop towards 110.90 support (Fibonacci retracement, horizontal overlap support).
RSI (55) sees bearish divergence signalling that a strong reversal is impending. However we see intermediate support at 50% so only a break of this level would confirm a further downside move.
Reason for the trading strategy (technically):
We remain bearish looking to sell below 112.65 resistance (Fibonacci retracement, horizontal overlap resistance, bearish divergence) for a further drop towards 110.90 support (Fibonacci retracement, horizontal overlap support).
RSI (55) sees bearish divergence signalling that a strong reversal is impending. However we see intermediate support at 50% so only a break of this level would confirm a further downside move.