EURJPY sold off twice, but we are expecting one more. Keep in mind that support and resistance zones aren't perfect, but it looks like the second push down is actually a test of the resistance zone. Right now, it is after the test and price is stalling for a bit.
This is going to be a time-weighted trade. We would like to see another push down on this pair. If it does not happen soon, we will consider closing it out because then it will look like we are trading counter-trend. You have to notice the strong buying since September 5, 2014. Trends are strong and this push down may only be buyers closing out their longs by selling. Another wave of buyers can take control if the price stalls for too long. Right now, we only have a very conservative take profit. If price does not push lower, then we may be trading counter-trend. However, the growth is just too fast and the rate is just too steep to sustain and so we expect a moderate to heavy sell-off. Once again, this is time weighted. Not too late to take this trade, but just be aware that you should have a back up plan in case price stalls for too long.
12 hours have gone so far. We would give it 8 more hours, which is two more bars on the 4-hour time frame. After the 8-hour leeway, we will be altering our trading plan accordingly. Right now, a conservative to moderate short entry is recommended.
