Reason for the trading strategy (technically):
Price has continued to drop from yesterday. We’re now on major support at 129.55 ( , horizontal swing low support, price action) and we expect to see an intermediate corrective bounce above this level for price to rise to at least 130.07 resistance ( , horizontal pullback resistance).
(34,5,3) is seeing strong support above 7.3% and we expect to see a corresponding bounce above this level.
Correlation analysis: We are seeing JPY weakness across the board with bounces expected on EURJPY , AUDJPY and USDJPY .