Eur Jpy possible lower time frame bounce from support.

5 Feb

Hi Guys

just looking at the Eur Jpy pair at the moment and looks like after pulling back from resistance could see a possible bounce on the 5 min or 15 min chart for a pretty good risk reward trade.

I am actually watching this pair in anticipation of it making a move up to a daily order block around the 162.6 level and seeing if I can start a long trade ( not this one) that I can ride up into the order block for a larger position size sell.

The zone I've highlighted coincides with the 0.382 fib level of the impulsive move from the low to the high. Also looking left there was a good move from support located in this zone and looking further left this area has been tested multiple times as both support and resistance. The
Anchored VWAP (purple line) from the low also lands in the zone as does the 5day MA (green line) which has been resistance multiple times before being cleared and could be a retest bounce off that.

A bullish bat pattern could also complete in the zone.

I try not to get into too many shorter timeframe trades as they are not as reliable in terms of patterns playing out and general support resistance holding up but enough confluence on this one to give it a go. Of course waiting for confirmation .... double bottom hammer candle engulfing candle etc in the zone before activating trade with stop 1 atr or so below the entry candle.

Please use risk management if you decide to use anything from this idea.

Safe trading all