Seeing that this pair has been overextended for quite a while now on the daily time-frame, i feel safe to place a short position with my stop loss right above the 124.000 price level with Fib retracement TP levels.
1) 4hr Divergence- Loss of momentum/bulls failed to carry prices above 124.000 for a HH 2) 124.000- strong reference point for bears, take profit levels for bulls. 3) a 4 hour close below the 21 moving average indicates prices have failed to rise 4) Candlestick confirmation after breaking bullish trendline. (possible retest)
Seems Right, But this is a Stubborn Mule! it wont Break Either Direction With everything Pointing South!, my EURJPY SHORT ENTRY 124.08 ST 124.70 TP 122.50
swiperfx
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@BPhoenix342, im sorry i dont understand your "stubborn mule" metaphor. Could you elaborate on that? As far as price goes, if the Euro were to drop any further it'd be at a possible retest of the 124.000 area next week
BPhoenix342
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@mrmejia, After US DATA, EURJPY already wants to test 124.00. "Stubborn Mule" Refusing to change one's mind or course of action despite pressure to do so; unyielding or resolute
swiperfx
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@BPhoenix342, haha mate, this analysis was way before US CPI and retail sales data. Time will tell, either way my stop loss is decently placed.