I have been suggesting EURJPY Short Swing trade for sometime.

I think you may consider closing this short swing soon.  So today may be the last opportunity to short EURJPY pair.

Here is the original plan.  (Below)

After making Double Top, the price made Lower Low nicely, followed by Lower High.  However, the price then made “HIGHER LOW”.  Thus I am expecting this down trend may end sometime soon.

2015-09-28_13-49-14-EJ0

 

Nonetheless, the price is currently on the down move from Fibnacci 50% and Role Reversal Resistance from 135.150.   Thus I am expecting the price will drop today, with the help of Bearish Divergence on the Stochastic.  Typically I would assume the price will drop down to Fib 138.2% or further down.  However, for today, I would like to go conservative since I saw Higher Low.     So my target is WS1 (133.38).

 

2015-09-28_13-29-38-EJ1

 

Now the direction is set – Sell.

From where and how?

Well, I prepared several options.

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Sell Pattern 1:
On M15 chart, the price seems to be already going down, making nice price action of LL and LH.  Everytime you see Lower Low, draw the holizontal line, and sell from there.   You can continue to sell this way, until it doesn’t work.

 

Sell Pattern 2:
More conservative sell will be, to wait until the break of Previous Low (134.15), and try to sell the re-test of 134.15 after the break.

 

Sell Pattern 3:

Even if the price goes up at some point, we can still sell this pair from 134.75 ish.  This level contains DPP, WPP, FIbonacci 38.2% and Role-Reversal resistance.  So plenty of reasons to sell.

2015-09-28_13-40-43-EJ3

 

Hope this setup helps you build your own.

 

YJ Baik – Forex.Today @ Tokyo

 

 

 

 

 

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