Support & Resistance: The price right now is right at the resistance zone.
Candlestick Analysis: Formation of some INDECISION CANDLES right at resistance which can potentially mean either of these 2 things: 1 - The market might be taking a short pause. OR 2 - The market might be at the end of the current short-term UP-Trend.
Ways to take the "SHORT" trade: AGGRESSIVE APPROACH: Take the trade right now, with a little stop (just above the high of the range) and a huge target, i.e., a good reward-to-risk ratio. CONSERVATIVE APPROACH: Wait for a strong bearish close in a huge bear candle and then pull the trigger, i.e., a bad reward-risk ratio.
RED FLAGS (WARNINGS): If the price continues to form INDECISION CANDLES and fails to give some HUGE BEAR CANDLES and instead, the price produces some BIG BULL CANDLES then that is the time when I exit my short trades.
So, what I would suggest is taking trades with 2 lots with conservative ATR stops above the highs of 108.62 JPY (maybe at 109 JPY) and targets at - 1. MA value zones, drawn on the charts. 2. The bottom of the range (The support zone or the lows of the range) @ 107.000 JPY
There are 68 pips (minimum) to be made in this trade (if this pair follows the trade-plan) with a minimum reward – risk ratio of 2 if we play our cards right.
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