JPY Yen pairs advanced up across the board yesterday. EURJPY was not the exception.
However, due to my bear bias for EUR, I would like to build up the Short trade plan for EURJPY.
Please look at the Hourly chart below. The price came back all the way up to Fibonacci 78.6%. Typically, when we look for the pullback, we use 38.2-61.8% Fibonacci level to expect the reversal. However, 78.6% is actually the last resort, which means if the price comes up more breaking 78.6%, I should no longer be a bear. Thus I would like to challenge for Short opportunity from 78.6%. This level is also the Role-Reversal Resistance. This level is also 55EMA on H4 chart.
I already started to see the rejection (down) on M15 chart. (It is now 11PM EST, Sep 8th)
If you read this posting before London Open, you could consider to short from the current level after confirming the reversal price action on M15 chart.
Even if you miss this immediate opportunity, you can always expect the 2nd chance, that is to wait for the next Lower Low and Short from there.
The conservative target should be DS1 (133.32) and the aggressive target should be DM1-DS2 zone (132.40 – 132.80).
Hope this plan will help you build up your own trade setups.
YJ Baik – Forex.Today @ Tokyo