"EUR/JPY: Red Alert!" Brace Yourself for the Bearish Tsunami.
The trade idea for EUR/JPY is to sell calland place sell limit orders. Two potential entry points are identified with corresponding take profit and stop loss levels, as well as the risk-reward ratio (RRR) and the account risk.
ENTRY 1:
Entry: 156.985
Take Profit: 155.734
Stop Loss: 158.187
RRR: 1:1
Account Risk: 0.75%
ENTRY 2:
Entry: 157.260
Take Profit: 155.217
Stop Loss: 158.187
RRR: 1:2.2
Account Risk: 0.50%
Technical Methodology:
The trade idea is supported by several technical indicators and patterns:
Breakdown of Support Zone on RSI (Relative Strength Index) on the Daily Time Frame: This suggests a bearish sentiment and weakness in the EUR/JPY pair.
Breakout of Rising Wedge on the Daily Time Frame: A rising wedge pattern typically indicates a potential reversal or bearish continuation, adding to the negative bias.
Rejection from Historic Weekly Resistance Zone: The pair has faced resistance at a significant historical level, which could indicate the presence of sellers and reinforce the bearish outlook.
Breakout of RSI Bearish Divergence on the 4-hour Time Frame: Bearish divergence on the RSI suggests a weakening bullish momentum and possible reversal to the downside.
MACD Bearish Divergence on the 4-hour Time Frame: Similar to the RSI divergence, the bearish divergence on the MACD histogram signals a potential reversal or continuation of the bearish trend.
Price Contacting Bearish Channel Resistance Trendline: The price action is approaching a resistance trendline within a bearish channel, indicating a potential area of selling pressure.
Price Contacting Important Resistance Zone: The price is interacting with a significant resistance zone, which adds confluence to the bearish bias.
By considering these technical factors, the trade idea suggests a bearish outlook for EUR/JPY, with two potential entry points, corresponding take profit and stop loss levels, and an assessment of risk-reward ratios and account risk. However, please note that trading involves risks, and it's essential to conduct your own analysis and consider market conditions before making any trading decisions.
#BearishDivergence
#RSIDivergence
#MACDDivergence
#ResistanceTrendline
#BearishChannel
#SellingPressure
#ResistanceZone
#TechnicalAnalysisSignals
#ReversalPotential
#ContinuationPattern
#EURJPYAnalysis
ENTRY 1:
Entry: 156.985
Take Profit: 155.734
Stop Loss: 158.187
RRR: 1:1
Account Risk: 0.75%
ENTRY 2:
Entry: 157.260
Take Profit: 155.217
Stop Loss: 158.187
RRR: 1:2.2
Account Risk: 0.50%
Technical Methodology:
The trade idea is supported by several technical indicators and patterns:
Breakdown of Support Zone on RSI (Relative Strength Index) on the Daily Time Frame: This suggests a bearish sentiment and weakness in the EUR/JPY pair.
Breakout of Rising Wedge on the Daily Time Frame: A rising wedge pattern typically indicates a potential reversal or bearish continuation, adding to the negative bias.
Rejection from Historic Weekly Resistance Zone: The pair has faced resistance at a significant historical level, which could indicate the presence of sellers and reinforce the bearish outlook.
Breakout of RSI Bearish Divergence on the 4-hour Time Frame: Bearish divergence on the RSI suggests a weakening bullish momentum and possible reversal to the downside.
MACD Bearish Divergence on the 4-hour Time Frame: Similar to the RSI divergence, the bearish divergence on the MACD histogram signals a potential reversal or continuation of the bearish trend.
Price Contacting Bearish Channel Resistance Trendline: The price action is approaching a resistance trendline within a bearish channel, indicating a potential area of selling pressure.
Price Contacting Important Resistance Zone: The price is interacting with a significant resistance zone, which adds confluence to the bearish bias.
By considering these technical factors, the trade idea suggests a bearish outlook for EUR/JPY, with two potential entry points, corresponding take profit and stop loss levels, and an assessment of risk-reward ratios and account risk. However, please note that trading involves risks, and it's essential to conduct your own analysis and consider market conditions before making any trading decisions.
#BearishDivergence
#RSIDivergence
#MACDDivergence
#ResistanceTrendline
#BearishChannel
#SellingPressure
#ResistanceZone
#TechnicalAnalysisSignals
#ReversalPotential
#ContinuationPattern
#EURJPYAnalysis