EURJPY : Continuation pattern in a mid term downside trend

FX:EURJPY   Euro Fx/Japanese Yen
The EURJPY             pair is in a downside trend since mid 2015 without any interruption. Currently, and this for four months, this pair is consolidating inside a triangle continuation pattern. This period of stabilization does not significantly put in danger the bearish momentum on the EURJPY             , as shown by the long term 200 days Moving average which is still very well oriented downwards.

On that situation, this is a quite good opportunity to initiate a short position because :
- the current price is close to the resistance at 116.349Y (two previous tops)
- this resistance area matches with the 62.8% retracement of the bearish wave (July-August)
- the upper downside trendline of the triangle makes an additional barrage for the buyers to go higher.

Here is the strategy :
- Enter short on EURJPY             @ the current price (approx. 115.31Y)
- Stop @ 116.75Y
- Target @ 112.72Y
Reward/Risk = 1.15

Feel free to leave your view about this analysis in the comment section
Comment: Previous bottom at 114Y broke during the day (lower shadow).
It is not time yet to close the position : wait the target to be hit.
Good job,, thanks for sharing
AlexandreNygal hisham101010
I'm glad to see that my analysis helps someone !
Let's see how this pair moves with the US election (I'm staying away from USD pairs before the results by the way)
haizat AlexandreNygal
thanks for sharing your idea
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