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Eurjpytradeplan

(EURO Short Covering) EURJPY Technical AnalysisHello Traders, Today, our focus shifts to the EURJPY trade pair and just to be clear, I’m Euro bearish. There are couple of reasons for this preview. Notice that after prices peaked on February 2, JPY bulls drove prices lower and the consequent retest of that high on April 25 at around 133 came in lower. Because of this we can say bear momentum is high and we shall only be taking short positions whenever we see sellers rejecting higher highs. At the moment though, prices are in a consolidation at-least in the daily chart. Different formations might be shaping up in different time frames and we shall trade differently in line with what’s happening with price-volume relationship. Considering this chart, our tops lies at 133.50 with mid-range resistance at around 132 or so. Notice that Euro buyers are driving prices now albeit with low volumes meaning that this rebound and a short covering. We shall stay alert and wait for a spike in volumes anywhere between 132.50 and 133.50. It will even be better if that spike is accompanied by a bear candlestick or a small trading range relative to what previous candlesticks. If this happens, ideal stops would be at 133.50 and bull targets at 127 and 123. On the other hand, conservatives can wait for a retest and a break below support at 129. Notice that in the last three attempts sellers have not been able to breach this support zone or area of accumulation. So, provided there is abnormal volumes rejecting higher highs and forcing the Euro to trade below 129, then ideal stops should be at May 9 highs of 130.50. Like early entries, bear targets would be at 127 and 123. In line with our EURJPY trade plan, everything may pan out as follows provided our conditions are met: Sell Limit: 132.50-133.50 Stops: 133.50 Take Profit: 127, 123 Scenario 2, Sell Stop: 129 Stop Loss: 130.50 Take Profit: 127, 123 Let me know what you think
Short
by Kipyegonn
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