USDJPY has shot up perfectly and has surpassed our intermediate resistance, leading to a further rise.
Buy above 106.41. Stop loss at 106.18. Take profit at 107.09.
Reason for the trading strategy (technically):
Price has rose perfectly to our first profit target and has surpassed that level. We are now seeing major support at 106.41 (breakout level, Fibonacci retracement, horizontal overlap support) that should provide the support we need to see price push up to 107.09 resistance (Fibonacci retracement, horizontal swing high resistance).
RSI (34) has made a nice bearish exit from our long term descending resistance-turned-support line signalling that a rally is expected.
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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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