EUR/JPY Key Points
- Higher time frame, EUR/JPY bearish trend.
- Intraday break of trend line support.
- Retest of short term support turned resistance holds and short trade plays out nicely.
EUR/JPY Technical Analysis
Morning team,
Trade recap analysis posts are always a lot more fun to write when you manage them properly. Remember yesterday's trade? After EUR/JPY broke support and retested, we were looking to trade the pair from the short side?
You can click the link above to read my thoughts at the time, but here's a quick extract below:
If price can come out of the box to the downside, we should see momentum take over and new lows form pretty easily, while even if it doesn't hold, there's still plenty of resistance above while price is capped by the broken trend line.
With that poorly managed bitcoin short still fresh on my mind, I wasn't going to allow myself to close this one early and actually give price action a chance to play out as expected.
You can see that price did push higher into the box but as I said in yesterday's analysis, there was always plenty of resistance in that zone to cap price and for me, it was only a matter of time before the bears took full control.
And as soon as the London session hit, take full control they did. Take a look at the updated hourly chart below:
No doubt there's 1:3 risk:reward or similar somewhere in that move from x to x and with the intraday zone still valid, this could well be one of those setups that give us a couple of chances to get in.
That zone is key. Don't delete it off your chart just yet.
Best of probabilities to you.
Dane.
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