EURJPY Short off of 200MA and S&REntry - 130.235
Take Profit - 129.44 - 79.5 pips
Stop Loss - 130.815 - 58 pips
This is another trade with a less-than-ideal risk/reward ratio. On the four-hour chart, I'm looking for a bounce off the 200MA and previous area of support (now resistance). You'll note that the 130.235 had been an area of interest previously, but I had drawn this line on the monthly chart. The lighter blue horizontal lines were drawn on the daily and represent weaker areas of S&R. Very rarely after the initial break above the Ichimoku Cloud does the price continue climbing/falling through previous areas of S&R. While I'd prefer to trade with a trend, there appears to be a number of things working in the favor of this trade. I expect price to make a correction to the weak area of support at 129.44. The 30EMA or conversion line may act as an adjusted TP area, depending on how the PA works out. The stop loss is above another weaker area of resistance.
Entry not yet hit. I'll add comments and updates as the trade progresses, but may end up canceling this one.
Thank you for looking,
Zedro
