Short EURJPY
Updated
We can short EURJPY for the following reasons.
Strategy Short now at CMP or 122.20 with SL at 123 area at EOD basis to target the minor wave 2 start with target of 110 area however we will review this soon and evaluate
- The Primary Wave 2 is completed thus we are potentially seeing wave 3. Wave 3 cannot go higher than wave 2.
- The price is also approaching intermediate wave 2 where it should terminate and start wave 3. Again wave 2 cannot go over the area of starting of wave 1.
- It is a hat-rick because minor wave 2 cannot cross over the area of where wave 1 started.
- All these regions are on the same resistance line, thus potentially we are gearing up for a sixer.
- Our potential target is 161.8% Fib level at 110 region.
- This is a very high probability because i have consider multiple waves with support and resistance level.
Strategy Short now at CMP or 122.20 with SL at 123 area at EOD basis to target the minor wave 2 start with target of 110 area however we will review this soon and evaluate
Note
The price has now moved in the 123 area thus we will have to wait for the candle to close in this area close this position.Note
On a 4h chart the price is testing long term trendline. There is also a strong divergence thus indicating that market may correct.Note
On the 2h chart as you can see 123.687 is the last top which would be a cause of concern. On the daily chart though we can see that 124.069 is the top where started the Intermediate wave 2 started. Thus wave 2 cannot overlap the region where wave 1 started. Thus our hard stop-loss would be 124.069.2h chart
D chart
Trade active
Trade closed manually
Position had to be closed as it hit our hard stopNote
We will re-enter this trade once the candle closes below the 5-8 candle on the closing.
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