Trade77; EURJPY Daily Trendline 7pm

Hello Traders, I’m Mani and I’m the writer of Trade 77 section, please follow me on twitter for further updates.

Price sharply bounced off the daily trendline I mentioned in twitter and decreased around 250pips in a day. Here I want to write about a possible short setup in this pair.

You can see that cruel bearish candle which has engulfed previous 5 bars and now this slow bullish move could be a correction of that candle. So let’s zoom into the H4 chart in order to find a good entry:

As you can see there is a pennant formation in the H4 chart and also higher highs and lows are indicating that we are in a short-term bullish trend. So the best place to go short would be a break of beneath trendline and also previous low at 112.19. Look for 111.50 as the first target and then 110.40 for the second target.
A break of the upper trendline will make this setup invalid and we should wait watch price action for another setup.

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