EURJPY

EURJPY is in a downwards trend. We are trading close to the upper trendline, so we are at a good position to short. We are also observing an inverse cup and handle formation (bearish). For this pattern to be valid, we will wait for price to break the horizontal support. We will be making an entry now, and taking profit when price approaches support. If it breaks the support, we will re-enter with a bigger lot size.

Our Entry : Sell at 123.220, or current levels in the 123 price region.
Stop Loss : 123.640
TP : 122.660 (We will be taking all our profit here and wait for it to break below support, before entering again.)

Also,
Sell Stop Order, or, manual entry after support is broken, and, 3 or more one hour candles close below the support

Sell at : 122.520
Stop Loss : 122.900
TP 1: 121.800
TP2 : 118.520
TP3: Trail to below 114.l680

Comment:

We took profits on the full first position as price moved below support. We also initiated our second order as we noted above, as price had closed below support for 3 one hour candles simultaneously. However, price rebounded, and spiked, triggering our stop loss. It is sad, because the spike took place quickly, and after triggering stop losses, returned to our entry zone.

We are still very interested in this trade. We will re enter at the same price noted above (122.520), however, due to the recent extreme price volatility in the area, we will wait for 2 daily candles to close below the support. If the price falls rapidly, do not chase it, wait for a retracement. We will update this thread on when we are going to enter/when we have entered.