EUR/JPY
EUR JPY
122.14 JPY (-0.34%)
Open Real time data - Forex
Open: 122.55
Change: -0.42
Volume: 185,793
Low: 121.89
High: 122.89
High / Low range: 1.00
Type: Forex
Ticker: EURJPY
ISIN:

EUR/JPY - Potential bearish breakout forming - 09/16/2020

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  • Timeframe : Daily

On the daily chart, recent price action is showing lower highs forming on top of a support level around 124.43.

There is clear bearish divergence between price and the momentum indicator, showing signs of exhaustion.

The pattern being formed is also a "head & shoulders" setup.

An entry could be made just below the flat level around 124.3, with the stop-loss placed  behind the most recent obvious swing high around 126.57

(should a lower high be formed BEFORE breaking the flat level, then the stop-loss could be placed above that)

Partial profits should be taken at 1:1 to mitigate risk and there is a significant monthly S/R level at 123.00

A trailing stop-loss behind every two successive seller bars could allow for trapping profits and letting them run. 

Risk should be no more than 1% for this trade setup 0.5% is recommended. 
This member declared having a selling position on this financial instrument or a related financial instrument.

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