Eur/Jpy Nearing Power Support but Will it Hold?

The Euro/Jpy has had a massive drop in the past week and is now approaching a power support  area at 115.00. The negative sentiment in the euro is very strong right now and with this change in thinking for traders it could very well push right through the strong support level. So that means that I will be watching that level closely and you should watch that level as well because the price will make a sharp move from that area which we can profit from.

Daily Chart

Now what I am going to be watching for is the price to change direction in that strong support area. If I see a strong 4 hr candle close with a bullish engulfing pattern then I will go long on that pair.
I will not go long until I see the strong bullish candle. When that candle forms I will then put a long position on and put a stop loss below that candle.Below is an example of what I am looking for.

The first target would be 117.00 and the second 120.00 If trading the bounce make sure that you use proper money management.

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Casey Stubbs is the founder of Winners Edge Trading, which is one of the most widely read forex sites on the web. Winners Edge Trading has trained thousands of people to trade the Forex markets.

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  • You are right I consider it more of a zone that is between the 115 and 116 areas.

    Thanks

    Casey