EURJPY Technical Signal: Tight Stop is Permitted

EURJPY Technical Analysis

Tension between Greece and Europe forces us to focus on the medium to long-term trades to ensure our safety from the intraday noise that has victimised many traders in the Foreign Exchange market. We are already in a decent profit over our short trade in the Dow Jones 30 and hold a long-term trade in crude oil. After revising multiple charts we have decided to focus on EURJPY.

The Euro suffered from hefty losses as reports suggested Greece is falling short on its fiscal targets. Risk-aversion was noted in he Forex market but Mario Draghi easing measures prevented steep losses in European equities. We have been monitoring the developing trend in EURJPY but it appears we may have a decent opportunity to enter the market with an attractive Risk-Ratio (RR) and a relatively tight stop loss order.

EURJPY Monthly Chart

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EURJPY Trading Strategy, 16 March, 2015

EURJPY Monthly Chart, 16/03/15

Euro-yen monthly chart indicates the potential for reversed Head-And-Shoulders (H&S) where the right-hand shoulder is higher than the left shoulder of the reversal pattern. We initially anticipated a deeper retracement towards the support line (lower black line) but it appears the pair has found support at 126.76, which is a firm support based on our technical models. Should we execute the trade at market price the RR will be decent, however, we are entering ahead of time as by the book we should wait for the monthly close.

EURJPY Strategy

The ‘Hammer’ on the 4hr chart may be an indication that we are on the yellow-brick road but there is still a fair risk of initiating the trade at market price. Due to the attractiveness of the trade and our impression the EUR pairs and crosses are due for a moderate recovery we have decided to take the long trade in EURJPY. We also have a technical entry in EURUSD but we do not wish to have a large exposure to the Euro due to Greece and other outside market events. The fundamental trigger for the moderate gains in the Eruo may be as a result of a new Quantitative Easing (QE) program from China that will boost the risk-appetite in global markets.

EURJPY Trade Details

EURJPY long @ market price
Take profit: 134.50
Protective stop: 125.90
Risk Ratio (RR): 1 : 3.5 (approx.)
Duration: 60 days

Updates regarding the trade will be posted at the bottom of this page when found relevant.

11/03/15 UPDATE: As expected, moderate gains were noted in EUR pairs and crosses, ensuring our trade in EURJPY is in +90 pips profit at the time of this writing.

EURJPY 4hr Chart

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EURJPY 4hr Chart, 16/03/15

EURJPY 4hr Chart, 16/03/15

We are closing 15% of the long trade at market price.

17/03/15 UPDATE: EURJPY is trading at 128.80 at the beginning of the European session. We are closing 10% of the long trade at market price.

17/03/15 II UPDATE: Although there is a moderate risk of meddling with the protective stop loss order before the monthly close we have decided to shift the protective stop loss order to the entry.

18/03/15 UPDATE I: As we have expected, moderate gains were noted in EUR pairs and crosses in the Forex market. EURJPY is trading at 129.88 following the Fed statement, which says a rate hike will not take place in April and it is unclear when rates will be hiked. We are closing 25% of the long trade at market price.

18/03/15 UPDATE II: As the gains continue we decide to close an additional 10% of the long trade at market price, 130.01 at the time of this writing.

EURJPY Current Chart

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EURJPY 60 Minutes Chart 18/03/15

EURJPY 60 Minutes Chart 18/03/15

EURJPY trade alert has been unlocked in light of recent profit and is now available to all traders to review, We will continue to post updates regarding the trade at the bottom of this page when found relevant. Join our global trade alerts to have access a direct access to our forex strategies as soon as they are issued.

18/03/15 UPDATE III: EURJPY exploded higher, trading at 130.96 after posting a higher of 131.74. We are closing 10% of the long trade at market price.

24/03/15 UPDATE: EURJPY is trading at 130.98 at the time of this writing. We are closing 10% of the long trade at market price and shift the protective stop to 128.90.

01/04/15 UPDATE: With a slight delay, EURJPY has triggered the protective stop which we shifted above our entry. We have ended trade with a decent profit.

As EURJPY trade is closed it can  now be accessed by all traders. Open trades are restricted to members only. We have been proving trade alerts in the spot Forex market since May 2014. Sign up for one of our plans and review our documented trades performance.
EURJPY Technical Signal: Tight Stop is Permitted

EURJPY Technical Signal: Tight Stop is Permitted
                                             EURJPY Technical Signal: Tight Stop is Permitted
EURJPY Technical Signal: Tight Stop is Permitted
                                         EURJPY Technical Signal: Tight Stop is Permitted
EURJPY Technical Signal: Tight Stop is Permitted


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