EUR/JPY H4 – Neither the bulls nor the bears in control

The EUR/JPY currency pair, on the H4 time-frame, has been in a ranging market from the 21st of October to date. Neither the bulls nor the bears have make their mark in the market. That means a lot of traders are on the sideline, waiting for a reason to get involved.

There are two possible entry scenarios.

If enough buyers decide to enter the market and the price breaks to the upside, it is wise to wait for a decent pullback and when the market continues in the direction of the original breakout, a calculated risk can be taken at shown on the chart.

On the other hand, if enough sellers find the price attractive and the market breaks to the downside, it will be wise to wait for a decent pullback and if the market continues in the direction of the downside break, to take a calculated risk as shown on the chart.

By taking partial profit at the Fibonacci extensions, the mental pressure of an open trade is effective managed and it becomes much easier to allow the market to dictate where and when the final profit can be taken.

As long as buyers and seller maintain an impartial attitude and demand and supply are in balance, the outlook for the EUR/JPY currency pair on the H4 time-frame will remain neutral.

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