Been posting quite a few conservative trades so let's go on the offensive now. This is a longer term trade and much more aggressive. Keep in mind that it will bare higher risks of course.
We are looking at a due range for the EURJPY. Bearish candlestick surpassing previous highs and closing lower and followed by a few quite days. Now we are looking for the sellers. Buyers bid up the price with only one down day in quite a rally. We expect buyers will start closing out their longs by selling short. In doing so, the next few days will mark the sell offs. The closing price target has been labelled on the chart as 136.80. This is because slightly past this point the prices tended to reverse. We will need to filter out the most recent bear period that ended off closing slightly past monthly lows.
This trade carries much higher risks because we are trading in favor of the Yen. By shorting the Euro, we are longing the Yen. This is rather dangerous because the Yen has been facing much heavier depreciation than the Euro especially against the US Dollar. Other than that, this is the only major precaution that should be noticed when taking this trade. Definitely give leeway for the your stop loss target as well of course.
