EUR/JPY , Updated Entry on Friday Advance
The EUR/JPY has continued its surge since the March 14th Chart Of The Day. Since our last article the pair has placed the 110 psychological pricing level under siege, reaching as high as 109.95 in early trading. Below we can see our chart suggesting a sell entry from a wedge shaped pattern on the EUR/JPY from earlier in the week. As price advances, we can still look to sell the pair, however our entry’s should be adjusted higher as support rises. Previous entry’s to sell were placed near 108.35. My preference is to advance this order closer to 109.15.
Moving into today’s 4Hr chart, we can begin to see our wedge evolving into an ascending triangle pattern. Price has continued to advance up support, while resistance is now being maintained by the February 26th high at 109.95. This is an exciting scenario for breakout traders. With one entry already set to sell below support, we can look to add an entry to buy a break of resistance. Having entry’s on either side of the market allow us to have flexibility in trading either direction the EUR/JPY may break.
My preference is to create a new entry order to buy the EUR/JPY over 110.15. Stops should be set under support at 109.70. Primary limits should look for a minimum of 90 pips at 111.05 for a 1:2 Risk/Reward ratio.
Alternative scenarios include price breaking below support towards our previous entry.
---Written by Walker England, Trading Instructor
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DailyFX provides forex news on the economic reports and political events that influence the currency market. Learn currency trading with a free practice account and charts from FXCM.
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.