Since the begining of the year the EURJPY has been forming a triangle on the 4hr chart, and within the last candle it began to break to the downside with momentum.
To find a profit target the high and low of the triangle formation were measure (aprrox 206 pips) and projected from the breakout point to the target of approx 112.457.
This area happens to be a confluence of support in the form of:
Horizontal price action support from the Dec 17th high
Fib support at 38.2 taken from the larger move up (AC on the chart)
Fib support at 61.8 taken from the most recent move up (BC on the chart)
Given this conflunce and relatively good risk to reward a position was opened at the break (lower time frame used to pick entry) at 114.502 with a stop at 115.289 and half the position will be removed at 112.525. Position size 20k lot.
To find a profit target the high and low of the triangle formation were measure (aprrox 206 pips) and projected from the breakout point to the target of approx 112.457.
This area happens to be a confluence of support in the form of:
Horizontal price action support from the Dec 17th high
Fib support at 38.2 taken from the larger move up (AC on the chart)
Fib support at 61.8 taken from the most recent move up (BC on the chart)
Given this conflunce and relatively good risk to reward a position was opened at the break (lower time frame used to pick entry) at 114.502 with a stop at 115.289 and half the position will be removed at 112.525. Position size 20k lot.