I posted EURJPY short trade yesterday. I myself shorted this pair. But the volatility was very low yesterday, and I closed the trade without much success.
However, this pair started to drop nicely in Asian hours today, so I am hoping we can have a nice short opportunity today.
I was talking about the possibility to go down from somewhere between Fib38.2 – 61.8 yesterday. But the price nicely dropped from Fib38.2. Also I have noticed the Bearish divergence on the Hourly Stochastic.
So simply I would like to short EURJPY until Fib138.2% (131.00 ish).
For the entry, you should find your own way for short. Here is one example. (This example is too close in terms of the timing. But this setup should be good at least until London Open)
Here is M15 chart. The price made Triple top during Asian hours (Yellow rectangle) and started to drop.
a) Triple Top
b) Lower Low
c) SHORT from the next Lower High
This is the textbook short trade. Even if you miss this opportunity, make sure you identify the down trend on M15 (or M5), draw holizontal lines, and short from the previous low (Role Reversal area).
I hope this analysis helps you develop your own.
YJ Baik – Forex.Today @ Tokyo