As the market touches the resistance line which was a strong support line previously.To enter in this trade we need to wait for conformation i.e engulfing pattern.
we can clearly see that after a long downtrend it bounce back to resistance level 2 and came down to resistance level 1 which is 50% fib retracement. Now to enter this trade we need to wait until it takes bounce from resistance level 2.
USDJPY 1H chart.we can see there is a double top and we go short because of RSI divergence showing low momentum. First target will be 0.5 fib retracement.
