Price has once again dropped to our support level. We remain bullish above major support at 81.90 (Fibonacci extension, horizontal swing low support, bullish divergence) and we expect a strong bounce above this level to at least 82.90 resistance (Fibonacci retracement, horizontal swing high resistance).
Stochastic (34,5,3) is seeing strong support above the 8% level and also sees bullish divergence vs price signalling that a bounce is impending.
Correlation analysis: We're expecting overall JPY weakness with bounces expected on AUD/JPY, USD/JPY, and EUR/JPY. Hence this falls very nicely into a correlated move.
Buy above 81.90. Stop loss at 81.67. Take profit at 82.90.
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