The views here are solely based on Technical Analysis techniques using my personal Smart Money approach. Hence, it is important to understand that the trading of CFDs comes at a risk; if not properly managed, you may lose all of your trading capital. To avoid costly mistakes while you look to trade these opportunities, be sure to do your own due diligence and manage your risk appropriately.
EUR/JPY: bears counterattack
2019-11-11 • Updated
SELL 132.00 SL 132.55 TP1 131.2 TP2 130.95
BUY 132.60 SL 132.05 TP1 133.25 TP2 133.75 TP3 135.70
On the daily chart, EUR/JPY formed an inside bar after two days of growth. A break of its top will increase the odds of the “Shark” pattern with a target at 88.6%. On the other hand, if the pair renews its low, it will allow bears to counterattack.
On H1, there’s a “Spike and reversal with acceleration” pattern. As long as the pair is above the trendline, bulls will remain in control. A break below support at 132 will increase the risks of a “Shark”.
As I earlier indicated in my article this week, I am expecting an upward push from the Dollar as a reaction from the Demand zone I have marked out. The PPI release earlier moved prices a bit but lacked sufficient momentum to cause a significant break of structure - and thus, no change of trend.
It is general knowledge that the Major currency pairs are pairs that have the US Dollar as either the base or quote currency. As a result, our trade ideas for major pairs will begin first with an analytical review of the US Dollar chart.
A comparative examination of the strength of the US-Dollar often gives tangible insight into the direction of Gold (XAUUSD). The chart above indicates the expectation of a bullish price reaction from the demand zone
The US Dollar has been remarkably sluggish for the past few weeks despite being within a distinct Demand zone. My expectation of a springing rebound off the demand zone has not exactly played out yet, however, the zone remains unbroken.
For those who may be unfamiliar with Price Action trading, the horizontal arrows represent areas where the market structure was broken. As you can see in the scenario above, price broke below the previous low at the two marked instances