The basic scenario for this EURJPY Long trade is simple – Fibonacci 50% bounce on H4 chart.
The price moved up nicely yesterday from 137.00 (WM2). If you enter this Swing trade, your 1st (conservative) target should be 138.80 ish, which is the previous high. If you are aggressive, the 2nd target will be 140.00 area. There are 2 reasons.
a) Fibonacci theory predicts, Fib50% -> Fib138.2%
b) Pivot Point theiry predicts, WM2 -> WM4
Anyway, if you are already in this trade, relax now and see how high the price will go.
For those of you, who want to join this Swing trade, or just do a spot trade, here is how to get in. Below is the Hourly chart.
The strategy is simple. Take another Fibonacci of yesterday’s move, and try to buy somewhere between 38.2 – 61.8% of the retracements.
Please note DPP and WPP are also included in this zone.
For the entry, check the Stochastic (which doesn’t necessarily go down to 25%) cross, and the reversal price actions on the smaller timeframes.
The targets for Spot Traders…
1st target should be DM4-DR2 area. 2nd target should be Fib138.2% area.
I hope this setup will help you build up your own trade setups.
YJ Baik – Forex.Today @ Tokyo