Date: January 11, 2018
USDJPY on major support, prepare for a bounce
Buy above 111.37. Stop loss at 110.80. Take profit at 112.13.
Reason for the trading strategy (technically):
Price has dropped strongly and is now testing major support at 111.37 (Fibonacci extension, horizontal swing low support, bullish bat harmonic formation) and we expect to see a strong bounce above this level to push price up to at least 112.13 resistance (Fibonacci retracement, horizontal pullback resistance, Fibonacci extension).
Stochastic (55,5,3) is seeing major support above 7.7% where we expect a corresponding bounce from.
NZDUSD continues to form a reversal signal, remain bearish
Sell below 0.7188. Stop loss at 0.7280. Take profit at 0.7041.
Reason for the trading strategy (technically):
Price continues to hover around our selling area and is forming a nice reversal signal with a strong shooting star candlestick formation signalling selling pressure. We are still unable to break through our ascending channel which would be the major trigger for our bearish move. For now, we remain bearish below major resistance at 0.7188 (Fibonacci retracement, horizontal overlap resistance, bearish divergence) and we expect price to push down to at least 0.7041 support (Fibonacci retracement, horizontal pullback support). Only a break of this channel would confirm further downside move.
RSI (34) is testing major ascending support and is starting to break below it. Only a clear break of our ascending support would trigger a strong bearish drop on price.
AUDJPY dropping perfectly as expected, remain bearish looking to sell on strength
Sell below 87.89. Stop loss at 88.47. Take profit at 86.69.
Reason for the trading strategy (technically):
Price has continued to drop strongly as expected after breaking our major ascending support line. We remain bearish looking to sell below 87.89 resistance (Fibonacci retracement, horizontal overlap resistance, Elliott wave structure) for a further drop to at least 86.69 support (Fibonacci retracement, Fibonacci extension, horizontal support).
RSI (34) remains in a descending channel and is approaching pullback resistance.
Bitcoin has started to bounce up nicely, remain bullish
Buy above 14332. Stop loss at 13581. Take profit at 15662.
Reason for the trading strategy (fundamentally):
We’re seeing a slight recovery on Bitcoin largely because of a few good news surrounding it. Firstly a report by Goldman Sachs highlights how bitcoin could serve as alternative forms of money in troubled economies, especially where traditional services of money are inadequately supplied. Along with that, Bitmain, the China-based bitcoin mining giant, has set up a new subsidiary in Switzerland after China’s move to quash the mining ecosystem. This has provided hope to many Bitcoin investors that most of these bitcoin mining companies would simply relocate to Switzerland.
Reason for the trading strategy (technically):
Price has finally managed to break out of our strong descending resistance line triggering a bullish move from here. We remain bullish above 14332 support (Fibonacci retracement, horizontal overlap support) and expect price to rise up further to 15662 resistance (Fibonacci retracement, horizontal overlap resistance). Our next most intermediate level of resistance is at 14980 (swing high resistance, Fibonacci retracement) and only if price surpasses this level would it add further conviction to our bullish move.
RSI (34) sees a recent bullish exit of its resistance-turned-support line which is in line with what we have seen in price.