USDJPY is seeing some really strong resistance, good opportunity to get into a short trade.
Sell below 106.47. Stop loss at 107.34. Take profit at 104.77.
Reason for the trading strategy (technically):
Price is seeing strong resistance at 106.47 (Fibonacci retracement, Fibonacci extension, horizontal overlap resistance, descending resistance) and a strong reaction could occur at this price to push it down to 104.77 support (Fibonacci extension). We do have to watch out for intermediate support at 105.24 (horizontal swing low support) which needs to be broken to open a further drop. RSI (89) sees descending resistance hold price down really well with its bearish momentum.
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Desmond Leong provides technical analysis to the largest banks, hedge funds, and brokers whilst coaching hundreds of aspiring traders. He specializes in providing actionable and accurate analysis that utilizes the most advanced theories.
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