EURJPY ANALYSIS EXPLANATION

Hi Guys,

The above EURJPY pair, analysis is based on 4hr time frame and 1hr time frame was used to clearly indicate the three important levels, i.e entry, stop loss and take profit.

The EURJPY has been having an uptrend move, which can be evidenced by the three (3) clear touch of the trend line drawn in the chart above. The price has been respecting that lower trend line in the number of times.

The price touched the Resistance region of 120.580 which stand to be historical resistance, it had a great bearish movement from there which caused a great breakout of the lower trend line, later on the price came back to retest at the exact point where the trend line passes.

The existing retest is our good entry criterion as in number of occasion we have noticed how price usually retests for gaining momentum and later on continue with the actual trend, which in our case is the bearish bias.

The entry should be at an exactly retest point, a fair risk reward ratio is used as the stop loss is just few pips compared to the take profit number of pips.

Trade Setup: Breakout of lower trend line and Retest

Entry for this pair should be at 120.280
Stop loss, 22 pips above the entry 120.500
Take profit 100 pips below the entry 119.280

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