USDJPY has made another bullish exit with great upside potential.
Buy above 106.48. Stop loss at 105.81. Take profit at 108.51.
Reason for the trading strategy (technically):
Price has rose perfectly to our profit target and looks poised to rise further after breaking a strong descending resistance-turned-support line. We look to buy above 106.48 (Fibonacci retracement, horizontal overlap support, breakout level) for a push up to 108.51 (Fibonacci retracement, horizontal pullback resistance). We do have to be cautious about 107.78 resistance as price might react off that level.
RSI (89) has made a similar bullish exit signalling a change in momentum from bearish to bullish.
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About the analyst
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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