Trend Analysis
The main view of this trade idea is on the 2-Hour Chart. The FX Cross EURJPY is in symmetrical triangle setup, where the trend lines are not parallel. Typically the target on the setup is the length of the highest high of the downward trendline and the lowest low of the upward trend line. While the symmetrical triangle is neither bullish nor bearish, given the current positions on the moving averages and the technical indicators, it is expected that the FX Cross will decline towards 128.50 from the time of publishing. A stop loss should be set a little above the resistance trendline at around 130.10.
Technical Indicators
At the time of publishing EURJPY is currently below its short (25-SMA), medium (75-SMA) and fractal moving averages. Also there has been a negative crossover on the KST, with the RSI trading below 50 and trending lower. Also, on multiple other timeframes, there are sell signals on EURJPY. These indicators support the bearish nature of the setup.
Recommendation
The recommendation will be to go short at market. Stop loss will be set around the 130.10 price level and a target of 128.50. This produces a risk-reward ratio of 2.28.
Disclaimer
The views expressed are mine and do not represent the views of my employers and business partners. Persons acting on these recommendations are doing so at their own risk. These recommendations are not a solicitation to buy or to sell but are for purely discussion purposes. At the time publishing, I have a position in EURJPY.
The main view of this trade idea is on the 2-Hour Chart. The FX Cross EURJPY is in symmetrical triangle setup, where the trend lines are not parallel. Typically the target on the setup is the length of the highest high of the downward trendline and the lowest low of the upward trend line. While the symmetrical triangle is neither bullish nor bearish, given the current positions on the moving averages and the technical indicators, it is expected that the FX Cross will decline towards 128.50 from the time of publishing. A stop loss should be set a little above the resistance trendline at around 130.10.
Technical Indicators
At the time of publishing EURJPY is currently below its short (25-SMA), medium (75-SMA) and fractal moving averages. Also there has been a negative crossover on the KST, with the RSI trading below 50 and trending lower. Also, on multiple other timeframes, there are sell signals on EURJPY. These indicators support the bearish nature of the setup.
Recommendation
The recommendation will be to go short at market. Stop loss will be set around the 130.10 price level and a target of 128.50. This produces a risk-reward ratio of 2.28.
Disclaimer
The views expressed are mine and do not represent the views of my employers and business partners. Persons acting on these recommendations are doing so at their own risk. These recommendations are not a solicitation to buy or to sell but are for purely discussion purposes. At the time publishing, I have a position in EURJPY.
Trade closed: target reached
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.