EURJPY Trading Setup
EURJPY Trading Setup
Dear traders,
I will keep this post short. The trade from last time started to already generate some profits. It took longer than expected, but finally price found some support and drove more buyers to it. I am keeping an open eye for the next price target.
EURJPY Trading Setup
Today’s trading idea is coming from EURJPY. I have been waiting for a price action setup, which has finally come. As discussed with one of my followers (Dan) in the comments section, I finally had a confirmation from price. If you look at the daily chart of the EURJPY, you will find out that there is a pin bar, which is forming on the support level of 118.00. It seems to me, the time is ripe for a long entry now. I will be looking to place my stop-loss just below 117.00. My first price target is the level of 119.500. My next target (depending on price action) is the level of 123.000. One last thing-since a lot of people are asking me if I provide trading signals-I do not! I hope you understand that these are my thoughts only and under no circumstances a recommendation to buy or sell. They are done for educational purposes only.
Happy Trading,
Colibri Trader
Hi colibritrader,
I have placed the EUR/JPY and the USD/JPY side by side and gone through the time frames 4 hour to monthly
Even though the USD is a stronger currency to the Euro, the Euro has more confirmation for a long signal.
I found this quite strange so I went into the major pairs to view USD correlations.
I found that the Aussie dollar and the British pound have been basing on monthly TF’s
In fact the British Pound has 6 inside months, this points to a break out either way.
Perhaps shock downside coming for the pound ? or shock up ?
Since 1994 there has not been this pattern 6 inside months.
Will be interesting to see to see what happens in the coming months, what I have trouble understanding is if US interest rates rise that should automatically mean that the US dollar will rise so I’m lost for finding an answer that the oppositie could happen. (US dollar falling with rising int rates)
Could these examples of AUD and GBP basing be suggesting coming weakness in the US dollar ?
Regards,
Dan
Hi Dan,
Great observations again! I am looking at those currencies myself and as you can see, I believe there is enough confirmation from price action to be long. That’s just my opinion, but fundamentally speaking, that is another beast. It could be the reason for another long article. Try to think about fundamentals as essential but at the same time try not to build any relationships between them and price moves. Obviously, they are great for macro analysis, but time after time have proven that cannot be relied solely upon. Unless you are in the hedge funds’ world, you can find strong relationships. The issue is that relationships are not unbreakable and correlations are not forever. What has worked in the past is not a guarantee that will work in the future. Same with technical analysis and everything else. I believe that experience is the great tool to have!
Hello colibritrader,
So at the end of the day, it 100% risk management, not 80% technicals and 20% fundamentals 🙂
My long Yen trade starting to pick up momo in @110.55 SL under swing low (USDJPY)
By waiting and watching I was able to get in with low risk.
It made sense to get on board with every box ticked for longs.
One thing Carl Ichan said on nov 9th Trump election day ” it made sense to trade the market”
US futures plummeted on Globex session
Thanks for your replies, they are bursting with wisdom, thank you
Dan
Hi Dan,
It is always pleasure talking to you! Your words are absolutely welcome and I appreciate your comments. Keep them coming. It is all about sharing
Hi colibritrader,
Looking over the charts there are so many opportunities setting up they really need prioritizing.
I’m looking at one pair as a “trend trade”. It may not be the best or most popular trade out there but commenting at this point in time.
The reason for labeling it as a trend trade is that the prospective TP areas are 450 to 780 pips away.
NZD/CAD
The monthly candle for Oct 16 made a statement, then the retrace of Jan month hammered down.
Looks like more downside coming.
Cheers
Hi Dan,
I agree with you. Sometimes, there are a lot of setups, other times there are none. Our role is to be patient and don’t rush things over! NZDCAD is not one of the more popular pairs our there, but there is definitely a imminent resistance zone. At the same time, it looks locked in a tight range. I personally won’t touch this pair, but does not mean you are wrong 🙂
Hi Colibritrader,
I’ve just read Dan’s posts, wondering if longer timeframe like monthly applies to your teaching.
So far I use D1-H4-H1.
Thanks,
Harry
Hi Harry,
For my personality D1-H4 works best! It does not mean that you should not watch other timeframes. In my opinion, the higher the timeframes, the better- in this way of thinking, I would prefer to look at Monthly than 5 minute charts. Hope that helps 🙂
Hi Harry,
Nice to hear from you, I’ve taken the monthly view on board after studying the “colibritrader” course.
The course mentions using monthly highs and lows as reference points.
As a variation to this I look at monthly candle formations too.
Everyone has their own approach, true.
Monthly is quite a long time frame, what I find interesting is that some softwares offer yearly and quarterly time frames as well !
Did you take the whole course? I mean did you read everything, Harry?
Hahaha… i may need to re read the whole material over again so I notice it. For those who have not taken colibritrader course, I would suggest taking it. Once one takes the course, it will make more sense on how master colibri get the trading setups. And one would understand what master colibri and his followers are discussing here. The course includes videos explaining the written materials, so it’s good for those who are learning by visual or auditory. And with Dan and Master colibri keep on discussing the setups, we get better sense on how to apply our trading. The course is also designated to cope with our trading psychology. Yes, many people can google or discuss in forums on what strategy is best and follow many rules. Like most of us I believe, many keep on looking for the holy grail. I don’t know if following master colibri’s teaching is the holy grail, but upon osearching for the holy grail, I keep coming back to check out what master colibri has to say about setups and his thoughts. I realize my time in this world is limited, thus I should stick to one whom I keep coming back to and not waste my time looking for others. Most (not all) of master colibri’s setup is proven to be right. And many ask him for providing signal. Well, why don’t follow master colibri and take his course? Happy Trading!
Hi Harry,
These are some great words! Thank you very much for the praise and I really hope I do deserve so much! One advise from me: don’t look for the Holy Grail- keep on looking for your P/L and make sure it is growing. Happy Thursday!
Hi colibritrader,
This pair has a lot going for it, P/A and fundamentally.
I won’t harp on the fundamentals, but if Europe does raise int rates this year look out.
EURJPY
Monthly / weekly candles “great”
Break out of consolidation all TF’s
I think this one is “buy the dips” all the way to 147 area.
Price is moving for a reason. IT’s are not stupid
P/A confirming intial start of move, that’s a good start.
In saying all of the above that tone can change in a minute, so at the same time expect the unexpected but I think on this one the odds are in the longs favour overall.
Regards
Hi Dan,
Good commentary. I think on this one, we might be headed higher, but just one think to consider- the resistance zone around 123-124 might reverse things. Just be careful when looking to enter in a trade, because that place looks like a possible reversal area. But 147 is definitely a potential target (based on the Monthly chart)