EURJPY pending shortBrief synopsis: Entry, 131.8 (Sell Limit two lot trade)
Stop Loss, 132.450
Target 1, 130.1
Target 2, 129.1 or hold trade to 126.695 zone with a trailing stop
Rationale: Price is currently in long term support & resistance zone. April 09 price rejection can give further inclination this zone will act as resistance.
Target 1 will be placed above psych level 130 to have a higher chance of avoiding not hitting our TP if price does form a higher low and reverses.
If price reaches target one move stop loss to break even, looking for a retest of the March lows and possibly further if we do see this.
Invalidation: I would be cautious and use discretion if I see a daily close above 132.05. However, 132.45 will be my invalidation because price would have to reclaim and move slightly above the March high. Which would also be a close above the 132.215 (0.382 Fib) taken from 02 Feb 2018 to 23 March 2018.
Set-Up: Waiting for intraday move during European or US session to get filled into trade. If it doesn't get filled I will NOT chase this. Fear of missing out is ok. Positive risk reward ratio is the key with our 1st target ratio 2.62.
Technicals: Price has been dancing around long term Fib level 131.45 (June 24, 2016 low to Feb 02, 2018 High). If we get a daily close below adds higher conviction to the trade.
Expecting this to be a choppy trade around 130.965 zone and the 130 Pysch level.
Fundamentals: Looking for broader JPY strength to resume if we do see lower lows and lower highs taking place on the economic data.
Notes: This is a swing trade, those that are short term traders and are not comfortable holding trades for weeks should avoid this trade. Use leverage wisely don't place a large percentage of your account on this. Chart used was daily.
Using a two lot trade. If we the trade work it's way below the March lows. One can use the 130 psych level as resistance and a trailing stop to squeeze as many pips in your favor is we do see this turning into a trend. This trade
idea will expire 24 hours after publishing.
