This is the 4 hour eurjpy chart. As can be seen from the red numbers price has been coming down since 28th of January 2016.
It printed a high on that day of 132.334 and has been continuously coming down providing us with lower lows and lower highs.
When I just watched the charts right now I noticed that price has printed a double bottom at the level of 122.430
This might be a reversal of a bearish trend into a bullish one as long as the double bottom holds.
But note also that the stochastik indicator is completely overbought and that price is at support.
There has been a small bounce from support having price now at the level of 122.768.
If the next four hour candle shows some bullishness and if the stochastik indicator climbs over the 20 % level then a long trade is suggested.
The stop loss goes below the double bottom. If the bottom area breaks then this trade setup is no longer valid.
A profit target might be the next resistance area, a 5/8 cross against our position or when price action prints a double top or a lower low with a lower high scenario.
Wishing you the BEST OF PIPS….