Direct from the desk of Dane Williams.
Having already made 1:3 on our last EUR/JPY long, price has once again returned to retest our intraday zone.
You can click the link in the opening paragraph to see our last EUR/JPY trade, or just take a look at the updated hourly chart below with the same intraday zone left on the chart.
EUR/JPY Hourly:
I always find it so interesting when price returns to retest previous zones like this, highlighting why you shouldn't be in a rush to delete even short term zones.
EUR/JPY Trade Walkthrough
In this case we had price above higher time frame support as price bounced at the EUR/JPY daily zone. This meant that we are looking to trade only from the long side.
In order to get an entry with a desirable risk:reward ratio, we zoom into an intraday chart and look for an intraday retest to manage our risk around. As we are looking to trade only from the long side, we'd be looking for a short term resistance zone to be retested this time as support.
You can see from the 'x' on the EUR/JPY hourly chart above that we got that on Monday to give us our first 1:3 trade and then again on Friday to potentially give us another chance.
Let's see if this one plays out exactly the same.
Best of probabilities to you,
Dane.
FOREX BROKR | Hive Blog
Higher time frame market analysis.