This pair has been ranging in a 290 pip wide bearish channel
on the 1H for the last 4 days. The upper trendline
has been tested 4 times and the lower trendline
twice. The announced QE
programme for the Eurozone and the Greek elections this Sunday, with the Syriza Party leading in the polls (looking end to austerity measures and seeking forgiveness for part of the nation’s debt) give the euro
room to fall against the yen, leading to more potential downside for this pair.
PA just tested and respected the upper trendline
and we have a Stoch
line crossover, so I am looking to sell the high in this channel. Assuming it will continue its way down, I have marked two profit targets along the way, both just above daily support levels. SL goes outside the channel, 10 pips behind the marked resistance level
. There are 190 pips on the line and the trade has a reward – risk ratio of 2.8!
UPDATE: PA gapped down, hit TP1, pierced through the support and almost hit TP2 before reversing.