EURJPY, daily tf, double top pattern to materialize

8 nov. 2020

Hello my friends,

I hope you all enjoy your weekend and have a great trading week during this US Election week.

I am gonna share some setup for you all but before i start, let's review the previous week performance.

First position is GBPJPY sell at 136.45 which hit my SL for -70 pips. I lost 2% from this trade

Second poisition is GBPAUD sell at 1.8300 which i closed at 1.8060 for +240 pips. I managed to banked 6% profit or 3R

Third position is GBPCAD sell at 1.7170 which i closed at 1.7000 for +170 pips. I banked 5.6% profit or 2.8R

I still got some positions floating through the weekend and please check my posts if you missed it.

Let's start with EURJPY analysis.
As you can see, it looks like EURJPY made a double top pattern and price already broken below the neckline.
This upwards movement looks like a retest to me and it could be a good sell/short opportunity.

Counting the measured objecive of this double top pattern, it shold be around 121.00
So we could try selling it for 190 pips drop.
Thursday candle looks like a bearish pinbar indicating sell pressure, and Friday candle looks like an inside bar of previous candle.
With this 2 candle forming exactly at resistance, i expect price to drop because sellers are in control for now.

Sell EURJPY 122.80
Stop loss 123.30
Take profit 121.15 (3.3R)

RR ratio 1 : 3.3
Use only 1-2% risk
Good luck