EUR/JPY Short post-news
EURJPY This trade is based off of the previous analysis i did on the EUR/JPY pre-news event. After the news, the pair became bearing approaching the first dip at the bottom of the predicted red arrow line as a sign of a bearing breakout. A confirmation is the pair retracing back to the top of the red arrow as a retracement (this is quite common in most breakout trend reversals or trend continuations). Though I think this will reach the 50% retracement, my take profit is at the 61.8% retracement. My risk to reward ratio is 1.5 which means that for every $1 I am willing to risk, my return should be $1.50. At this moment, my trade is in the profit, after a dip into more profit, I will adjust my stop loss to break even guaranteeing not losing money on this tade.
Another indicator I included at the bottom is the RSI (Relative Strength Index). On the 4 hour, there is a sign of a overbought environment which signals a bearish trend. Forgive me, it doesn't look so neat on my chart.
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