Date: January 17, 2018
USDJPY dropping from our pullback perfectly as expected, remain bearish
Sell below 111.02. Stop loss at 111.97. Take profit at 109.49.
Reason for the trading strategy (technically):
Price made a pullback to our major support-turned-resistance line at 111.02 (Fibonacci retracement, horizontal overlap support) as expected and dropped strongly once again in line with the bearish view we have. 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 dropped perfectly, remain bearish for a further drop
Sell below 88.43. Stop loss at 88.70. Take profit at 87.24.
Reason for the trading strategy (technically):
Price has dropped perfectly from our selling area yesterday before bouncing above our ascending support line. This ascending support line would need to be broken to trigger a strong bearish move down. We still remain bearish looking to sell below major resistance at 88.43 (61.8% Fibonacci retracement, Elliott wave corrective structure) 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 dropped perfectly, remain bearish for another drop
Sell below 135.91. Stop loss at 136.38. Take profit at 134.84.
Reason for the trading strategy (technically):
Price has dropped absolutely perfectly from our selling area yesterday and has since made an intermediate recovery. We’re back to testing our major resistance again and we look to sell below 135.91 (Fibonacci retracement, Fibonacci extension, horizontal overlap resistance, bearish divergence) for a strong drop towards 134.84 support (Fibonacci retracement) first.
Stochastic (55,5,3) is seeing major resistance below 95% and a bearish divergence vs price also signals that a reversal is impending.
Bitcoin bouncing off major support, remain bullish for an intermediate correction
Buy above 10332. Stop loss at 7902. Take profit at 12808 and 14497.
Reason for the trading strategy (fundamentally):
Price has dropped strongly amid concerns in Asia as investors still keep an eye out on the crackdown in Korea. Most recently a senior official at the People’s Bank of China is reportedly calling for a wider ban on services related to cryptocurrency trading in the country. The goal is to end all cryptocurrency trading-related activities and services. This has rattled the market strongly leading to its sell off.
Reason for the trading strategy (technically):
Price has dropped strongly since yesterday and we’re seeing that price has bounced off major support at 10332 (ABC Fibonacci extension, long term 50% Fibonacci retracement) and we expect an intermediate corrective bounce from here. Our first target would be 12808 (38.2% Fibonacci retracement, horizontal pullback resistance, breakout level) before 14497 (Fibonacci retracement, horizontal swing high resistance).
Stochastic (34,5,3) is seeing major support above 12% where we expect a corresponding bounce from.