EURJPYDaily chart is forming a Pennant shape, and getting closer to the apex, which is the indication of the next movement.

2015-08-10_11-03-32-AJ1

It is interesting to see Daily Ichimoku chart as well. (Below)   Currently the candles are within the clouds, and the boundaries of the clouds, which often function as Support/Resistance, also looks like Pennant.     Also note that the current Clouds are about to be twisted, and Bearish Clouds are waiting.

Yes, my bias is Bear.

2015-08-10_11-05-44-AJ3

Looking at the Daily chart again, I am seeing the huge N-shape wave (shown as Red arrows).  So let’s build up the Short scenario.

2015-08-10_11-03-32-AJ2

 

 

2015-08-10_11-09-56-AJ4

On H4 chart (above), the candles are blocked by the Resistance (and WM3) for some time, while seeing Bearish Divergence on the Stochastic.  I would say the 1st sell zone is the current level. (136.20-30)     If not this zone, the next sell zone will be 137.00 level.

Also on Hourly chart (Below), I posted last week that the price is in the range bound, and still within the same rage. (135.50-136.40)   Hourly Stochastic seems to be in our side (ready to go down).

 

2015-08-10_11-13-36-AJ5

As a summary, I am looking for Short trade, either from 136.40, or 137.00.

The target should be

a) 135.50 (1st target, if you are trading based on H1 chart)
b) 135.00 (Double Bottom on H4)
c) 133.00 (for Swing Trade on Daily Chart)

 

Oh, I forgot to mention that most of the major companies in Japan are on Summer vacation this week.  So I don’t expect a high volatility in Tokyo time.   I think this trade can be London open trade.

 

Happy Tradin’

 

 

YJ Baik – Forex.Today @ Tokyo

 

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