I've bought from the 23.6 fib as seen on the chart above and I'll long it until 61.8 to see how it reacts to the resistance line,
a break of that would most likely mean that the bulls are back and we can expect to reach our TP3 target =145.400
My bias for this pair is still and it will remain so as long as the 143.30 (71.86 fib) resistance remains intact, if it breaks then we can expect further upside to 145.400 to be realistic.
Reasons to buy:
- Currently the pair has formed a nice Bullish pattern and is probably making a correction.
- The has crossed the signal line which indicates a buy signal
- Double Bottom
- Touched the 140.6 which is a very important support, indicates possible trend change!
- Bullish butterfly D leg completeion near the 140.6 support line
Keep in mind that the Japanese Yen related pairs tend to be very risk sensitive. This is probably one of the most risk sensitive pairs, so having the stock markets rally simultaneously is a huge help for this market which can move 100 pips in the blink of an eye.
The UK elections are tomorrow aswell at the time of writing, so have that on your radar because we can expect some big volatility!
We are also having a nice buy signal from the MACD right now, keep your eyes on it and thank you for the support!
RSI is nearing the 70-100 region scale which suggests that the resistance level for the pair is near or has been reached and the rate is likely to fall, lets see!