EURJPY has enjoyed the boost since NFP last week.
It’s interesting to see where the boost stopped.
Below is the Daily Ichimoku chart. This is the textbook chart that the Cloud can be resistance/support. The candles are clearly blocked by the cloud.
Below is the regular Daily chart. The price has been rejected by the downtrend line. Also at Reversal Pivot zone (MM4 – MR2).
Thus there is no reason to be Bull with this pair.
Let’s look for the Short trigger.
During Asian Hours (Yellow diagonal), the price has been in a side way. We could sell this pair with the breakout strategy.
I will short at either
a) Break of today’s low, or
b) Break of yesterday’s low
If you want to sell from DPP, I wouldn’t stop you either, because you could set the tight stop, just above DPP.
Hope this helps you build your own trade plan.
YJ Baik – Forex.Today @ Tokyo