EURJPY - Swing Trading sell idea
Updated
EURJPY had a very strong short-term up-movement, especially due to a very weak Japanese Yen in the past 2 days.
In the long term, I still believe that the market is bearish:
We have the chance to trade the rejection on a very good level of resistance.
Although the first reaction is promising, we have a bearish engulfing pattern, the market is coming from a very strong up-movement, so I want to wait for a second confirmation.
There's a candlestick (the one where the red horizontal line starts) that shows a first attempt by sellers to push the price down, but buyers proved to be strong enough and we had a so-called pin bar.
This is a second attempt and we want to see sellers closing the session below the low formed by last attempt, so I place a stop entry order below it, below the red horizontal line.
Stop loss above the resistance and take profit slightly above last important long-term swing low, where I will evaluate if it is better to take the profits or keep the trade for a breakout and a new lower low.
In the long term, I still believe that the market is bearish:
We have the chance to trade the rejection on a very good level of resistance.
Although the first reaction is promising, we have a bearish engulfing pattern, the market is coming from a very strong up-movement, so I want to wait for a second confirmation.
There's a candlestick (the one where the red horizontal line starts) that shows a first attempt by sellers to push the price down, but buyers proved to be strong enough and we had a so-called pin bar.
This is a second attempt and we want to see sellers closing the session below the low formed by last attempt, so I place a stop entry order below it, below the red horizontal line.
Stop loss above the resistance and take profit slightly above last important long-term swing low, where I will evaluate if it is better to take the profits or keep the trade for a breakout and a new lower low.
Trade closed: stop reached
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