EURJPY Short Idea
Trend: Bearish
Trade scenario 1: Bearish momentum continues and we see a break of the current rectangle. Look to enter on a retest and a confirmed lower high below the pattern. Target lower toward major support and negative fib levels.
Trade scenario 2: We see price action break bullish out of the rectangle. Entering long will be more risky but if you see a confirmed higher low above the pattern with strong setups you can enter and target higher toward key resistance. Do not force this trade if risk to reward is not at least 2:1.
Trend: Bearish
Trade scenario 1: Bearish momentum continues and we see a break of the current rectangle. Look to enter on a retest and a confirmed lower high below the pattern. Target lower toward major support and negative fib levels.
Trade scenario 2: We see price action break bullish out of the rectangle. Entering long will be more risky but if you see a confirmed higher low above the pattern with strong setups you can enter and target higher toward key resistance. Do not force this trade if risk to reward is not at least 2:1.