EURJPY : Continuation pattern in a mid term downside trend
The EURJPY pair is in a downside trend since mid 2015 without any interruption. Currently, and this for four months, this pair is consolidating inside a triangle continuation pattern. This period of stabilization does not significantly put in danger the bearish momentum on the EURJPY, as shown by the long term 200 days Moving average which is still very well oriented downwards.
On that situation, this is a quite good opportunity to initiate a short position because :
- the current price is close to the resistance at 116.349Y (two previous tops)
- this resistance area matches with the 62.8% retracement of the bearish wave (July-August)
- the upper downside trendline of the triangle makes an additional barrage for the buyers to go higher.
Here is the strategy :
- Enter short on EURJPY @ the current price (approx. 115.31Y)
- Stop @ 116.75Y
- Target @ 112.72Y
Reward/Risk = 1.15
Feel free to leave your view about this analysis in the comment section
On that situation, this is a quite good opportunity to initiate a short position because :
- the current price is close to the resistance at 116.349Y (two previous tops)
- this resistance area matches with the 62.8% retracement of the bearish wave (July-August)
- the upper downside trendline of the triangle makes an additional barrage for the buyers to go higher.
Here is the strategy :
- Enter short on EURJPY @ the current price (approx. 115.31Y)
- Stop @ 116.75Y
- Target @ 112.72Y
Reward/Risk = 1.15
Feel free to leave your view about this analysis in the comment section
It is not time yet to close the position : wait the target to be hit.