EURJPY had a strong Bullish wave on the H4 chart. The price seems to have found a strong level of Resistance, thus it might be the time for a pair to make a journey towards the South. Today the first H4 candle came out as a Spinning Top. The next one came out as a strong Bearish candle, which made a breakout at a significant level of support as well. Thus, we might get a short opportunity later today. Let us have a look at the H4 EURJPY chart.
The level of 132.410 got broken by today’s second H4 candle. If the current H4 candle is held at the breakout level, then the sellers are going to wait for an H1 Bearish Engulfing Candle to take the sell entry. Let us have a look at the summary of the trade…
- Sell Limit Order: 132.410
- Stop Loss: 132.600
- Take Profit- 131.850
- Validity: 72 hours
- Whenever possible, move the stop loss to the entry price and whenever you want, you can take profit anytime as long as you feel comfortable
After a breakout, retracement or correction takes place. A correction is slower than the breakout candle’s pace. This usually ends up producing an inside bar. We are expecting an H4 inside bar as well as an H1 Bearish Engulfing Candle at the breakout level to take the entry. The signal might come within this H4 candle, or on the next, but at least the current H4 candle has to be smaller candle (Bullish) than the breakout candle. This is what correction is all about. We the traders must remember that retracement or correction is as important as the breakout.
EURJPY Price Action Analysis – 16th April 2018
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