Let's take a detailed look into EURJPY’s current price action, what my analysis and forecast so far, and do some backtesting on previous prices to give us a positive outlook on the potential bearish continuation price.
Starting from the Higher time frame, clear double tops, and ascending channel reversal are very noticeable. Then the price had a bearish reversal impulse phase, pushing the price down.
After we begin to see a consolidation, forming a potential expanding correction, which can give us opportunity for a continuation of the bearish move.
Following up on my EURJPY analysis I post, I took 2 entries so far:
First trade - 1% loss Price wasn't ready to reverse and correctively move sideways/up, tagged me out for a loss.
Second Trade - Enter after a rising wedge, “M” style reversal correction. Currenting Running about +2%
Original Full analysis/forecast:
So 2 TP to look out for are:
Now, let's do some backtesting on the EURJPY previous price action. From the Higher Time Frame:
Similar price action in the past, can provide us a higher probability trade to enter for the downside.
The more backtesting we do, the more confidence we get at identifying the next potential impulse phase where we can capitalize.
Any questions, comments, or feedback welcome to let me know :)
Thank you
Some backtesting video I made in the past:
Backtesting & Chartwork on Forex Market
Backtesting & Chartwork on Indices Market
Backtesting & Chartwork on Crypto Market How & Why I backtest:
Prevent Blowing an account by backtesting:
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Position Update:
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Out for +2.8% profit, will monitor the price in next few days for possible re-entry.
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Downside looks more promising as we broke the previous lows, still got rooms to go :)