since the FX markets are pretty slow here is a homework chart I sent out to the PF Lets do it here too See if you can find the key components to watch as a technical trader. The pieces encompass a large range of concepts we use here But they also help one formulate potential trade plans(depending on style) Here is the blank chart what do you see? {image}
Price is ranging between 125.5 and 132.5. 132.5 seems to be an important area, as it is a W1 and D1 HCR as well as the 50% retracement of the last long term downward move (august 2008 - june 2012). Price is currently retesting these levels.
I personally would not put too much weight on the bearish MACD divergence, as EurJpy is the only JPY pair showing this.
Altogether:
- either there is a bearish PA by 132-133, ideally closing below the short-term ascending TL. SL above the setup, FTA by 130 (?)
- or I would play a PBTCA 132.61 (which is in line with playing the break of a 2-days BUOB it today closes above 132.61). SL below the ascending TL, FTA 133.7 ie previous bar High
eagerly waiting for your analysis
take care
Slow & steady
