The EURJPY daily printed a bullish pin-bar yesterday, rejecting the 121.10 level as support.
Take note not only of yesterday’s pin-bar, but also to the overall picture the market is providing.
We have important support and resistance at 121.10 (blue boxes) that has repeatedly caused price to reverse in the past. This level was respected yesterday – price bounced hard.
Since the lows in late February, price has been trending up. Most indicators on the daily timeframe wouldn’t have caught up to this fact, but as a price-action trader, the evidence is clear:
1. Big bullish candles that dwarf the smaller ‘down’ day candles
2. Bullish candles that close near the highs
3. The retrace moves barely go anywhere
The evidence suggests that we might be in the early stages of an uptrend.
I’m interested in getting in on the 1-hour or 4-hour charts. Both timeframes could provide an excellent entry opportunity – soon. We’re not quite there yet.
Do you see what I’m seeing on the 4-hour or 1-hour chart that has caught my eye? You don’t need to trade both, in fact you should have a preference between the two (this is a personal choice, one is not better than the other.)
Let me know, I’d love to hear your thoughts.
If you let me know your ideas on the trade, I will gladly include you when/if I take the long with my entry, stop and profit target levels.
Even better if you see something different and reckon I’m completely off. Let me know!