EURJPY set to continue lower
Either side of the weekend EURJPY posted a bearish-engulfing pattern, a major reversal pattern in Japanese Candlestick Analysis. We have seen steady confirmation of this pattern with weakness seen subsequently. This has paused today and looking at my charts we have a level above that could be worth using as a reference for a short trade ( a low volume node on the profile).
Looking at the "bigger picture", there is no doubt we are in a downtrend so a short trade fits in with the longer-term skew for this pair.
Management and risk description
It's a pretty tight stop anyway, but once the first target is hit the stop can be moved to entry.
Entry: sell around 114.60-65.
Stop: above 115.30.
Targets: 113.50, 112.50, maybe even 111.00.
Time horizon: 1-2 weeks for the first two targets. might need a little longer for the third!
Daily Candlestick Chart
Weekly Bar chart