IDENTIFYING TRADE POSSIBILITY – EURJPY PAIR

EURJPY TRADE SETUP –

How to see the Trade possibility ?

1. Trend –

Identification of the Trend – “UP or DOWN”
Price is making Higher Highs and Higher Lows –
Trend is “UP”
Price is making Lower Highs and Lower Lows –
Trend is “Down”

Now you have 2 possibilities –
(I) Contra Trade (Against The Trend) OR
(II) Ride with the Trend

2. Trendline/Channel Formation – Making Trend Lines.
Whether Price is Moving in a Channel?

3. Support & Resistance
Check whether Price is taking support at previous
resistance or taking resistance at Previous Support.
Trendline Support & Resistance of Channel.
You can use Fibonacci Ratios too.

4. Candlestick Pattern
Now Check at Support & Resistance which Candlestick
Pattern has been made so that we can take our trade
accordingly.

So Here, in EURJPY – Price is in up trend making higher highs and higher lows. Perfectly moving in a Blue Parallel channel and also has a rising wedge Pattern.
So now we have 2 Setups –

Contra Trade – If Trendline Breaks go short, Price can retest previous resistance at 125.50 levels

Ride with trend – Price currently at Channel (Lower Trendline) Support. Wait for some decent green candle to go long.

Earlier also price moved between the Fibonacci 23.6%-38.2% retracement and again price is testing the Fibonacci 23.6%-38.2% levels.

lets see where it will give the entry

EURJPY Daily Chart
Disclaimer

Above Views are only for Educational Purpose. Equity, Commodity & Currency Trading has large potential rewards, but also Large Potential Risk. You must be aware of the risk and willing to accept them in order to invest in the markets. Don't trade with the money you can't afford to lose. This page is neither a solicitation nor an offer to acquire/sell any script. Please consult your financial advisor to take appropriate investments as per your risk profile. The past performance of any investments is not an indication for future returns.

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