Daily Time-Frame Perspective:
As you can see in the chart below, the pair EUR/JPY has rallied for a while and need some rest. It has just completed a harmonic pattern and rejected from -0.18 fibonnacci resistant level. Moreover, the StochasticRSI is “Over Bought”
So I think, It’s going to be a bearish move and we’r going to have a SELL Forex Trading Signal. But we’ll decide after further analysis.
EUR/JPY Daily Chart
4 Hour Time-Frame Perspective:
In 4 hourly chart, we can see, Price has rejected from the 27.2 Fibonacci expansion level and made a bearish pin bar. Here, the StochasticRSI is extremely “Over Bought”. So, I’m now 70% positive about having a sell trading signal.
EUR/JPY 4-hr Chart
I think, the price can rally upto -61.8% Fibonacci retracement level and then come back down. So, If we want to trade this pair, we may open a “Sell Limit” order, which allows us a 2.25 risk/reward trading opportunity.
I am going to take the following action:
Trade Type: Sell Limit @ 138.250
Stop Loss: 139.500
Take Profit: 135.500
See the Chart Live in action: https://www.tradingview.com/chart/EURJPY/pEFDPv00-Forex-Trading-Signal-EUR-JPY-for-5th-February-2018/
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