Sid Thapar Blog | IDENTIFYING TRADE SETUP-EURJPY PAIR | Talkmarkets
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I'm a qualified Financial Planner (CFP) accredited by FPSB India.

I have total work experience of 14 years in Financial Industry. Worked with Broking firms/ Mutual Funds/Banks brands like Bajaj Capital / ICICI Prudential / JM Financial / HDFC Bank Ltd. Along with Financial ... more

IDENTIFYING TRADE SETUP-EURJPY PAIR

Date: Wednesday, August 9, 2017 5:05 PM EST

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

 

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