From a COT perspective, we can see that the JPY continues to have a strong long contract momentum. This week the big players dropped a large chunk of short contracts.
From a technical perspective, we are entering a critical supply area. This and the COT data are enough for us to enter a trade with a good Risk to Rewards ratio.
Our target will be the 109.000 level and TP1 and TP2 can be seen along the way as well.
TP1 - it aligns the the 0.382 Fibonacci level and the daily critical demand zone
TP2 - it aligns the the 0.5 Fibonacci level and the daily critical demand zone
And the 109.000 area is not only a psychological point, but it matches also perfectly with the 0.786 Fibonacci level and the monthly critical demand zone.
Happy Trading!
From a technical perspective, we are entering a critical supply area. This and the COT data are enough for us to enter a trade with a good Risk to Rewards ratio.
Our target will be the 109.000 level and TP1 and TP2 can be seen along the way as well.
TP1 - it aligns the the 0.382 Fibonacci level and the daily critical demand zone
TP2 - it aligns the the 0.5 Fibonacci level and the daily critical demand zone
And the 109.000 area is not only a psychological point, but it matches also perfectly with the 0.786 Fibonacci level and the monthly critical demand zone.
Happy Trading!