Last week EURJPY made a strong bearish rejection from a confluence of pivot points; both Weekly and Monthly R1's.
I am looking for a move up to the 129.500 area, a show of weakness and a reason for entry (lower low on a M15 chart, enter on a pullback). This area is a confluence of resistance, with the Daily R1, Weekly Pivot Point, previous short term structure highs and a 38.2% retracement of the move down.
If we break through this level then the next level I will look to short will be from 129.900. This is area is guarded by the Weekly M3, todays R2, previous minor structure lows and a 61.8% retracement of the move down.
Conservative targets are the Weekly S1 at 128.100.
Risks to this trade are the fact that price has double bottomed at the Monthly M3, but the strength of the move down and the technical indicators suggests to me that the selling isn't finished yet.
- The 4hr Stochastic went oversold and is now trending down
- The 4hr MACD is down
- The 4hr RSI is trending down
- The 1hr Stochastic is currently overbought
- The 1hr MACD is down
- The 1hr RSI is trending down
I am looking for a move up to the 129.500 area, a show of weakness and a reason for entry (lower low on a M15 chart, enter on a pullback). This area is a confluence of resistance, with the Daily R1, Weekly Pivot Point, previous short term structure highs and a 38.2% retracement of the move down.
If we break through this level then the next level I will look to short will be from 129.900. This is area is guarded by the Weekly M3, todays R2, previous minor structure lows and a 61.8% retracement of the move down.
Conservative targets are the Weekly S1 at 128.100.
Risks to this trade are the fact that price has double bottomed at the Monthly M3, but the strength of the move down and the technical indicators suggests to me that the selling isn't finished yet.