There’s a really good setup for buying the EUR/JPY pair on the daily chart.
The yellow channel shows that there’s an up-ward trend going on, and the price is currently at the bottom.
We believe that the price will bounce for the following reasons:
- there’s a hidden divergence (red lines), aka the up-ward trend will continue,
- the price is currently at the 61,8% Fibonacci level, and
- the stochastic is about to cross.
Our advice is to wait until the stochastic has been crossed, and there’s two consecutive bullish candles.
This is a 300 pips move that we are talking about so, there’s no need to rush, and since it’s on a daily chart, give the price some space to ‘breath’.
A recommended Stop Loss can be at the price 128,55.
ALWAYS PLACE A STOP LOSS TO PROTECT FROM REVERSALS.
Read about the Trend/Wave/Extreme system here