We saw a bullish EMA crossover (Golden Cross) occur on the 26th of April 2017 on the 4H chart and price has respected this crossover and has been riding above it, making higher highs. However, in recent weeks we've seen progression slow down and we have made our first Lower High as the uptrend begins to curve round to the downside.
Price has also fallen below the EMA50 and is heading towards our first price target of 123.158 which would make it's first Lower Low.
On the 30M chart we can see the EMA50 has now crossed below the EMA200 (Death Cross) and with strong divergence to the downside, this would support our decision to short the EURJPY pair.
Place your stop at 124.695 and price targets of 123.158 but we're not setting a TP, we will let this run and adjust our stop accordingly to secure profits.
This research is for informational purposes and should not be construed as personal advice. Trading any financial market involves risk. Trading on leverage involves risk of losses greater than deposits.
Please comment below and Like if you agree with my analysis.
Trade active
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This may not drop + pull back for a bounce off the support line at 124.379 and for this reason, I am entering this trade now.
Trade safe everyone and best of luck.
Trade closed manually
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Good morning everyone,
I was hoping we would have reached our target by now. We are strong on course, however, I have decided to close this trade ahead of the London session as it may take an about-turn on us. If you are keeping your trade open, trade with caution and monitor in a lower time frame.
Congratulations to everyone who entered this trade :)
in your analysis I understand your target is sell to 123.158. However, your trade active is look like buy!!
AEFX786
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@salah3827, Sorry for the confusion Salah, hope my response above clears it up. This is a sell trade. 123.158 is first target and providing we can break that support, we will look for a further drop. I hope this helps.
salah3827
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@AEFX786, Thanks for your reply. I'm already in sell.
When you said may not drop + pull back, So you trade as buy or sell?
AEFX786
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@salah3827, Sorry Salah I meant Resistance line, I was worried price might not pull back to resistance line before dropping further. However, it has done so and so far the resistance is holding :)