Candles have found Intermediate Support in confluence with support from the 20 EMA. Notice 2 Doji formed at support. Latest candle was a tall green candle. This candle opened right at support and has moved higher closing near its high of the session and closing above both Doji. This candle is called a rejection candle as it is rejecting lower prices. This price action shows buyers are in full control indicating price is ready to move higher.
I have placed my Entry at 121.600 just below the close of the tall green candle for a nice 3:1 reward to risk ratio. Price normally retraces part of the previous days candle so I would expect the Entry to be hit.
I have placed my Stop Loss 2 pips below the low of the tall green bullish rejection candle. If this pair is ready to move higher then price action should print a higher low and the Stop Loss should not get hit.
I have placed my Price Target at the Intermediate Resistance level for a nice 3:1 reward to risk ratio. Price action normally moves from support to resistance so I expect price action to hit my price target.
Once the Entry price is hit price should continue to make higher highs and higher lows so the Stop Loss should not be hit. This trade setup is a little risky as this market could open right were it left off on Dec 26, move down to trigger the entry and then continue to move down and get stopped out. However, if EJ is truly reversing upward it will print a higher low and move higher in price and the stop loss would not be hit.
I have placed my Entry at 121.600 just below the close of the tall green candle for a nice 3:1 reward to risk ratio. Price normally retraces part of the previous days candle so I would expect the Entry to be hit.
I have placed my Stop Loss 2 pips below the low of the tall green bullish rejection candle. If this pair is ready to move higher then price action should print a higher low and the Stop Loss should not get hit.
I have placed my Price Target at the Intermediate Resistance level for a nice 3:1 reward to risk ratio. Price action normally moves from support to resistance so I expect price action to hit my price target.
Once the Entry price is hit price should continue to make higher highs and higher lows so the Stop Loss should not be hit. This trade setup is a little risky as this market could open right were it left off on Dec 26, move down to trigger the entry and then continue to move down and get stopped out. However, if EJ is truly reversing upward it will print a higher low and move higher in price and the stop loss would not be hit.
Comment:
Risk: 0.5%
Comment:
EURJPY is speedily heading towards take profit!