Pair is in downtrend for at least year. It created visible channel which trapped the pair in August and since then it is bouncing from two levels 75.50 and 72.50. If I would look for psychological levels I would rather go for 75 and 70.
What is telling me that the pair has good chance to follow described scenario:
- trade is following recent trade
- GAP from daily chart is respected by market(blue circle) and successfully stopped bullish movement last Friday
- 200 Ema also successfully stopped bullish move with fancy doji candle.
- it is very common for market that when pair is trading in channel upper and lower parts are creating very strong support/resistance area.
- I choose TP area wisely and it is set in 50% of channel. It is reasonable and it still gives us 3:1 R/R.
Cons:
- there is actually one and it is big bullish candle which are often suggesting further up movement
I think it is worth risk and if it happens that the Yen will be loosing on value in next week then I will set up trading plan accordingly.
What is telling me that the pair has good chance to follow described scenario:
- trade is following recent trade
- GAP from daily chart is respected by market(blue circle) and successfully stopped bullish movement last Friday
- 200 Ema also successfully stopped bullish move with fancy doji candle.
- it is very common for market that when pair is trading in channel upper and lower parts are creating very strong support/resistance area.
- I choose TP area wisely and it is set in 50% of channel. It is reasonable and it still gives us 3:1 R/R.
Cons:
- there is actually one and it is big bullish candle which are often suggesting further up movement
I think it is worth risk and if it happens that the Yen will be loosing on value in next week then I will set up trading plan accordingly.