EURJPY Trading Setup

by: Colibri Trader

The last trading setup was a potential short GBPJPY one. There was a very good formation on the intraday chart, which lead to a small short trade on my side.

I might have entered a bit prematurely, but price action will show.

Especially the 144.00 level will be a great test. If I see some rejections there, I might be more hesitant leaving this position to run any longer.

EURJPY Trading Setup

Today, I have spotted another possible short setup. Not very surprisingly, it is coming from the EURJPY pair. The daily chart has printed a rejection and I will be closely inspecting the intraday (4H) chart.

Together with the Thursday’s candle they form a bearish engulfing formation. This is giving further confidence to the short sellers.

I will wait for price to open and see how it will react to the 130.50 level. If I see some sort of rejection or confirmation of the short setup, I might take action.

A good target for this hypothetical trade is 128.50. Depending on price action, the move can extend down to 125.00.

Happy Trading,

Colibri Trader

p.s.

Check out my latest article on the relationship between the US Stockmarket and the Japanese Yen

or if you are new to this profession, you can start with What is Technical Analysis

Anything else- please e-mail me directly at: [email protected]