Here is another start of the week.
Nikkei started Bearish, but with the help of China GDP, it went up a bit, resulting moving sideways so far. (1:10 AM EST.) Shanghai index is also flat…
Looking at H4 chart below, I would still like to sell this pair. Currently it is at Fib 50%. It may go down as low as Previous low at 181.90. (Oct 13 low)
Also please note that the price is facing the resistance (Kijun line) on Daily Ichimoku. (below)
But the strongest reason to sell this pair is Divergence on Hourly stochastic as seen below. (You should remember I am a huge fan of Divergence)
For the entry, I would like to suggest to wait until the break of the previous low (183.66 – also WPP) on M15 chart.
But hey, waiting for the break of 183.66? That’s 100 pips down!! If you think so, then you are aggressive!! 🙂
For those aggressive traders, we could also play the breakout strategy at the immediate low on M15. (as shown below)
You want to play the breakout at DPP? or 184.000 ? Well, that’s your alpha.
The key is… just to identify the entry point which you feel comfortable with. The entry could be 5/8 EMA cross on Hourly chart, or anything…
1st target should be DM1. (183.14 DM3 -> DM1).
Aggressive target will be 181.86 (Prev Low on H4).
Hope this setup helps you a bit.
YJ Baik – Forex.Today @ Tokyo