2016-04-05_00-10-40eurjpy

Dear all,

On this eurjpy daily chart we note that price is in a down trend.

It has been making lower lows retracing deeply on its pullbacks.

The 50 day moving average is breached several times only for price to come below it again to continue its bearish descend.

Therefore when I found price at resistance (area of 127.000 to 128.000) and I noted that price went below it then I looked for reasons and entries to short.

A bearish engulfing candle confirmed my bias and the stochastic indicator at the 80% level was the confluence factor I still needed.

Therefore I am trying to take advantage of the direction of the trend and the patterns price has displayed so far.

2016-04-05_00-22-53eurjpy4h

The goal on this 4 hour chart is to explain the entry fine tuned with a smaller time frame where we take advantage if the overbought stochastic.

Here on this chart we were also given a divergence which reenforces the down move.

2016-04-05_00-27-27eurjpy15min

You may try to fine tune with as many fractals as you wish as long as you do not over analyse or miss the move.

You may apply this procedure to any trade idea and will like that put the odds working in your favor.

BEST OF PIPS

2 thoughts on “EURJPY Analysis”

  1. Wayne McDonell - TradersWay.com says:

    Nice article. Thank you.

  2. Tyler Lund - FOREX.TODAY says:

    Nice work.

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