Continuation of Butterfly at Major Resistance Zone, Retracement Channel Completed at FR88.6%, Short EURJPY, 14th Novemeber 2016

EURJPY H4, Major Resistance Zone

EURJPY M15, Retracement Channel after Butterfly

Technical Analysis:
The price has entered a major resistance zone and was resisted. It then formed a butterfly and started falling from the resistance zone.
The price made its first wave of depreciation and broke below its previous swing low, signaling for further depreciation, followed by a retracement channel where the price is now resisted at FR88.6% within the channel.
Market Sentiment:
The yen is most likely to strengthen amid uncertainties after U.S. election which will spread across the global economy. The euro also seems to be weakening on if you take a look at EURUSD and EURGBP where both have depreciated significantly with no sign of exhaustion. It is therefore that EURJPY which is now seen at a major resistance zone and with all the signs pointing towards a major reversal, it is most likely to fall significantly.
Trading Plan:
Short with full risk as execution is within market hours and structures are perfect with a continuation of a butterfly supporting a fall.
Stop loss was set 30 pips above FR88.6% based on the retracement channel.
First TP is seen at FR61.8% where the 2nd wave of depreciation will be completed.
Second TP is seen at the swing low of the retracement and final TP is seen at FR161.8% of the butterfly which lies within a key support zone.
EURJPY H1, Trading Plan


Leave a Reply