Good morning everyone...
Just a newbie view on EUR/JPY today.
This pair is currently in ranging phase between highest price 137.44 and lowest price 136.56. We can see at this moment the price is still playing around the low 136.56, we don't know what the market players will do next, they might decide to bring the price up and retest the high 137.44, or they might decide to bring the price lower breaking the low and retest 136.
We really don't know, our job is to monitor the price movement and see where it go next. In this situation if we are certain that the price is going up then we may buy as close to 136.56 as possible, set our stop loss below 136.56 and target around 137.44 or higher if 137.59 is broken. And if we are certain that the price is going down and breaking the low then we may sell as close to 136.56 as possible with stop loss above 136.56 and first target around 136 or lower if 136 is broken.
Keep in mind those levels are not by any means a solid steel wall, they are merely levels to watch. Our job is to pay attention when the price is near one of those levels and see what happens, the price may or may not break those levels and may or may not even reach those levels. So watch the price movement carefully and adjust our position accordingly. Never force a trade, never push our luck. If we already have some profit in hands while our target is still far away then move the stop loss to lock some profit, do not move it to break even. It's business, there's cost to cover so it's better to walk away with 1 or 2 pips profit than nothing.
Hope this helps, good luck :)
