DecaPip Daily: 21/07/2015

Introduction to DecaPip
Welcome to our newest feature; DecaPip. The concept is simple: our professional market technician, with an exceptional system, showcases his own daily Support and Resistance levels across a broad spectrum of FX currency pairs. The most effective way to use the levels are:

  • If indicated levels hold, look for the price to reverse.
  • If levels are broken, look for the price to continue past to new highs or lows.

 

Today I will be looking into the EURJPY currency pair and a potential sell trade set up that may be about to happen in this highly volatile currency pair.

We currently have the USDJPY struggling at four decade old resistance level currently located at 124.40 and looking undecided directionally.

The EURUSD  is in my opinion waiting for buyers in the 1.0700/50 area to step in and take it to 1.10-1.110 area for a technical re-test so we may continue to see selling in the 1.0840/1.880 region to try to take it lower before any real genuine buy interest comes in on this pair.

With that in mind the EURJPY currently looks an attractive option for short and medium term sellers.

For the perfect trade we need a great risk reward ratio an excellent entry so our stop loss is not triggered and a target that is both realistic and achievable.

Looking at the chart below we can see the possibility that the EURJPY may test the 132 support 2 area if indeed it is heading lower in this week’s trading.

A good first option to trade this pair would be to look for a higher time frame close under 134.04 with a target of 132 and an appropriate stop loss using a 4 to 1 risk reward ratio.

Screen shot 2015-07-20 at 19.04.52

The second and possibly safest way to trade this would be to look for sellers in the 135.10- 135.20 region and execute a swing short trade and capture some quick DecaPips.

Screen shot 2015-07-20 at 19.33.49

 

Got any questions about our new DecaPip feature? Contact Nathan at Nathan@littlefishfx.com

Disclaimer:
All comments, charts and analysis on this website are purely provided to demonstrate our own personal thoughts and views of the market and should in no way be treated as recommendations or advice. Please do not trade based solely on any information provided within this site, always do your own analysis. For more information please see our full disclaimer in the footer below.