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.
In this edition of DecaPip Daily I would like to turn our attention to the EURJPY currency and how we may be able to enter a sell position into a pull back in what may well be a potential medium term trend shift in this pair.
After a roller coaster week in the foreign exchange market it is time to look for relatively easy trade set ups rather than enter in to any high risk areas.
The chart below highlights the break point and extended sell off and hopefully traders will be looking to sell into any weakness from a healthy retrace point in the upcoming trading session.
For myself the best way to trade this would to look for a safe entry towards the black trend line and currently 136.60-136.85 look very attractive pull back resistance areas to sell with a stop loss above the break area.
For downside targets and a potential medium term trend shift we need to look at the longer time frame chart below for a much broader overview on EURJPY.
We can see that a break below 135.50 may expose the 134.20 area which can be classified as critical support and a valid target for any sellers in the 136.60-80 area.
Trading in this pair for sometime has seemed cumbersome and awkward and certainly having traded it a great deal previously it is a welcome addition back on the watch list.
Got any questions about our new DecaPip feature? Contact Nathan at Nathan@littlefishfx.com
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.