Hello traders, have a trade setup for eurjpy pair. We can see that price was not able to break the structure level around the 122.4 area and when it did it bounced back. It seems to have formed a falling wedge. Also we have a divergence on the pair since Macd is showing a higher low where as the price action made a higher low. there are a couple of ways that this trade can be placed
we can buy it now with sl under the previous low. and target the red trendline above or we can wait for for break of the falling wedge and place the next trendline in black above. We also have a structure level right at the second target. Lastly since its a wedge formation we can target the width of the wedge as well hence explain my reason for the third target at the 132 level above.
Cheers
we can buy it now with sl under the previous low. and target the red trendline above or we can wait for for break of the falling wedge and place the next trendline in black above. We also have a structure level right at the second target. Lastly since its a wedge formation we can target the width of the wedge as well hence explain my reason for the third target at the 132 level above.
Cheers