EURJPY Forming a New Lower High - Lower Lows Expected.
As you can see EURJPY has been forming a series of Lower Highs (LH) and Lower Lows (LL) - which I have labelled onto the price action accordingly.
The blue dotted lines are recent (or we can call it daily) areas of support/resistance, where the price has reacted.
This means we are still in a secure downtrend.
I did post a short on this yesterday, however I got stopped out as there was still more upside to come.
The price has both managed to break thru the blue dotted line and the monthly resistance at 120.00.
These would be a place where people (including myself) who are already short have stops placed. This means liquidity for the larger players in the market, a brilliant place for them to accumulate sell orders.
My overall bias on this pair is still SHORT, however we must wait for the LH to be formed, before entering short. Meaning we want to see some bearish reveral signs around this level, which is a level of monthly reistance and also 61% Fibonacci retracement.
You can see I added a Counter Trendline onto it, which you could wait for to break before entry for added security.
I will update this idea when and if the Lower High does form.
Right now we must wait.
The blue dotted lines are recent (or we can call it daily) areas of support/resistance, where the price has reacted.
This means we are still in a secure downtrend.
I did post a short on this yesterday, however I got stopped out as there was still more upside to come.
The price has both managed to break thru the blue dotted line and the monthly resistance at 120.00.
These would be a place where people (including myself) who are already short have stops placed. This means liquidity for the larger players in the market, a brilliant place for them to accumulate sell orders.
My overall bias on this pair is still SHORT, however we must wait for the LH to be formed, before entering short. Meaning we want to see some bearish reveral signs around this level, which is a level of monthly reistance and also 61% Fibonacci retracement.
You can see I added a Counter Trendline onto it, which you could wait for to break before entry for added security.
I will update this idea when and if the Lower High does form.
Right now we must wait.
Comment:
OK, EURJPY has tried to push higher all day - However it has failed to make new highs past the 4hrly shooting star that I mentioned earlier.
Since them we have had two 4hrly spinning top formations - indicating indecision.
The 1hrly Counter Trendline that I applied earlier is still holding, and has held well since I mentioned it.
Wish I could apply the hourly CTL to the chart above but I don't think I can edit the charts once posted (still new to Publishing on Tradingview!).
It currently has been breached, just waiting for an Hourly close (5mins time til hourly close) below the trendline for entry.
For ADDED confirmation you could also wait for the Hourly MA's to cross over.
Will let you know when I have entered.
Since them we have had two 4hrly spinning top formations - indicating indecision.
The 1hrly Counter Trendline that I applied earlier is still holding, and has held well since I mentioned it.
Wish I could apply the hourly CTL to the chart above but I don't think I can edit the charts once posted (still new to Publishing on Tradingview!).
It currently has been breached, just waiting for an Hourly close (5mins time til hourly close) below the trendline for entry.
For ADDED confirmation you could also wait for the Hourly MA's to cross over.
Will let you know when I have entered.
Comment:
Entered short at 120.248
Stops at 120.700 (20pips+ above last considerable high)
Profit to be taken around 119.40 first target - 118.00 secondary target and 117.50 overall target
Stops at 120.700 (20pips+ above last considerable high)
Profit to be taken around 119.40 first target - 118.00 secondary target and 117.50 overall target
Comment:
I got stopped out of my trade @ 120.700
Took a loss of -48pips
It did decline but it rebounded quite viciously from the monthly support at 120.000
Losses are part of the forex game - you must accept them, learn what you can and move on!
Luckily this was a relatively small loss, the risk reward ratio was good on the trade.
Took a loss of -48pips
It did decline but it rebounded quite viciously from the monthly support at 120.000
Losses are part of the forex game - you must accept them, learn what you can and move on!
Luckily this was a relatively small loss, the risk reward ratio was good on the trade.
However it does keep edging upwards - I have found and drawn on an hourly counter trendline which will help assist with entry.
We cannot enter while it continually makes new highs, we must try and enter when it starts to decline again.
If we look at the 4hourly a shooting star has formed with the last candle, so we could see some decline here.
Overall if we get a daily close where it currently is, or lower we will also have a daily shooting star.
Right now we must wait for entry - if it does not fulfil what we need it to, we will not enter. Simple.