Day trade
Trade view / 18 October 2016 at 7:21 GMT

Counter trend trade lower in EURJPY

Analyst / PIA First
United Kingdom
Background

EURJPY 

Looking to short EURJPY with the correct signal. 

Monthly – Consolidation close to the Fibonacci confluence area at 115.36-111.51. 
EURJPY M
 Source: Saxo Bank

Weekly – Elliott wave would dictate that, for the last thirteen weeks, we have merely been in a 4th wave correction. The question here is whether this will form a corrective channel OR a triangle before we push lower again. 
EURJPY W
Source: Saxo Bank 

Daily – This looks like the favoured outlook, with an AB=CD formation taking us to the channel top and the 38.2% pullback level at 121.26. However, there is plenty of scope for a move down towards the channel base at 122.08 before bulls reappear. We've had mixed and volatile trading for the past four days. 
EURJPY D
 Source: Saxo Bank

Intraday (four-hours) – The intraday chart highlights this last period of consolidation as a triangle formation that has a bias to break lower. Bespoke resistance is seen at 114.65 (the price as we write). This is also a 61.8% pullback level of the last decline (from 115.03-114.00). I am looking for a short-term trigger to sell the cross close to current levels (nothing as yet).
EURJPY 4
 Source: Saxo Bank


Management and risk description

A move through 114.10 (triangle base) and stop goes to entry. 

Parameters

Entry: close to 114.65

Stop: 114.95 (above triangle top)

Target:The target is 112.97, the 78.6% pullback and close to the AB=CD formation target (112.89)

Time horizon: this week

— Edited by Clare MacCarthy

Non-independent investment research disclaimer applies. Read more
18 October
Andrew Perkins Andrew Perkins
I'm again LOL short 114.60
18 October
Ian Coleman - First 4 Trading Ian Coleman - First 4 Trading
snap .... good luck
18 October
Ian Coleman - First 4 Trading Ian Coleman - First 4 Trading
Open at the moment I am EURGBP short / EURJPY short / GBPUSD long / USDCAD short (square on USDJPY as I prefer EURJPY)
18 October
Andrew Perkins Andrew Perkins
not to much going on then ,
18 October
AlexF AlexF
Hi Ian do you prefer GBPUSD long or short eurgbp to play GBP recovery ?
18 October
Ian Coleman - First 4 Trading Ian Coleman - First 4 Trading
EURGBP short ... just bounced of the triangle base
18 October
Ian Coleman - First 4 Trading Ian Coleman - First 4 Trading
Holding tight between bespoke support and resistance (EURJPY) ... should breakout soon. Bias is still mildly bearish
18 October
Andrew Perkins Andrew Perkins
holding on tight
18 October
Ian Coleman - First 4 Trading Ian Coleman - First 4 Trading
it is a roller-coaster P + L day ...
18 October
Andrew Perkins Andrew Perkins
any profit taken to day will be a god send ,
18 October
Andrew Perkins Andrew Perkins
114.00 big level go though where having the rest of the day off (i wish )
18 October
Ian Coleman - First 4 Trading Ian Coleman - First 4 Trading
for sure .... early bar !!!! lol. Could move stop to near the high now if nervous (then go to the pub!)
18 October
Andrew Perkins Andrew Perkins
coat is ready to put on il get the 1st round
18 October
Ian Coleman - First 4 Trading Ian Coleman - First 4 Trading
painful to watch ... I am stepping out for a while
18 October
Andrew Perkins Andrew Perkins
almost out of the channel 114.15
18 October
Ian Coleman - First 4 Trading Ian Coleman - First 4 Trading
I think we can lower stop to entry now
18 October
Ian Coleman - First 4 Trading Ian Coleman - First 4 Trading
take a bit of care at 113.67 (61.8% fib and an AB=CD )
18 October
Andrew Perkins Andrew Perkins
I'm at the pub what you drinking
18 October
Andrew Perkins Andrew Perkins
Profit taken just awaiting to see if we see a better break out of the channel, to the new resistance
19 October
Ian Coleman - First 4 Trading Ian Coleman - First 4 Trading
I am out out at 113.70 ... unsure about most majors today
21 October
vyacheslav111 vyacheslav111
Hi! Your opinion on EURJPY now ?
21 October
Ian Coleman - First 4 Trading Ian Coleman - First 4 Trading
We are selling into rallies today .... 113.55

EURJPY - Trading within a Bearish Channel formation. The AB=CD formation target is located at 112.89. Trend line support is located at 112.45. Risk/Reward would be poor to call a sell from current levels. Further downside is expected although we prefer to set shorts at our bespoke resistance levels at 113.55, resulting in improved risk/reward. Our profit targets will be 112.90 and 112.45.
21 October
vyacheslav111 vyacheslav111
Thanks!

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