Date: January 16, 2018
USDJPY breaking out nicely and back to pullback resistance, remain bearish
Sell below 111.02. Stop loss at 111.97. Take profit at 109.49.
Reason for the trading strategy (technically):
Price has dropped strongly after breaking out of our major support-turned-resistance line at 111.02 (Fibonacci retracement, horizontal overlap support) and has started to make a pullback to our entry area once again. This is a good opportunity to get into the trade once again for those who missed the first breakout. We look to play the drop to at least 109.49 (Fibonacci retracement, horizontal overlap support, Fibonacci extension).
RSI (55) has made a recent bearish exit which is in line with the bearish exit we’re seeing in price.
AUDJPY testing resistance, remain bearish
Sell below 88.28. Stop loss at 88.70. Take profit at 87.24.
Reason for the trading strategy (technically):
Price continues to test major resistance at 88.28 (ABC Fibonacci extension, 50% Fibonacci retracement, Elliott wave corrective structure) and we remain bearish below this level for a drop towards 87.24 support (Fibonacci extension, horizontal swing low support).
RSI (34) sees major descending resistance line acting as resistance to push price down from here.
EURJPY testing major resistance, time to sell
Sell below 135.91. Stop loss at 136.38. Take profit at 134.84.
Reason for the trading strategy (technically):
Price is now testing major resistance at 135.91 (Fibonacci retracement, Fibonacci extension, horizontal overlap resistance, bearish divergence) and we expect a strong drop from this level towards 134.84 support (Fibonacci retracement) first.
Stochastic (34,5,3) is seeing major resistance below 95% and a bearish divergence vs price also signals that a reversal is impending.
Bitcoin profit target reached perfectly once again, prepare for a bounce
Buy above 12858. Stop loss at 12348. Take profit at 13748.
Reason for the trading strategy (fundamentally):
Price has continued to tumble with South Korean cryptocurrency investors facing fines if they have anonymous accounts, along with that, the justice minister aired a plan to ban trading at cryptocurrency exchanges. To add fuel to fire, the Indonesia Central Bank has also warned that cryptocurrencies may not be used for payments in the country. These influx of bad news surrounding bitcoin has caused it to fall even further.
Reason for the trading strategy (technically):
Price has reached our selling area and dropped down perfectly to our profit target. We look to play another bounce above 12858 support (ABC Fibonacci extension, horizontal swing low support) towards our resistance target at 13748 (Fibonacci retracement, breakout level).
Stochastic (34,5,3) is seeing major support above 10% where a corresponding bounce could occur.