A Fade Trade On EURJPY After Exhaustion
Hello and welcome! This is my very first trading article. I hope it's helpful.
On Jun 9 2015 EURJPY reached a daily resistance level, having gone up for about 132 pips. 132 pips is a sufficiently high distance for this pair to travel, especially during this time of the year. There was not any major news event that day to spur any substantial trend that I could trade (either a breakout or trend riding) so I started looking for fading or counter-trend opportunities, of which EURJPY looked the most promising.
There was a small range or congestion around the daily resistance level of around 140.70 for about 4 bars on the hourly chart so I placed a pending sell order a few pips below the extreme of the congestion area with a stop loss on top of the said area and a take profit level at a little above 139.85 - an important weekly level.
I woke up and checked my computer. To my relief the order had executed and closed at the take profit level (I was slipped a little). To tell you the truth the huge drop was also facilitated by some unexpected news out of South Korea, so I may have gotten lucky on this one. The important thing is that I felt strongly about the set-up and all my reasoning felt right.
I bagged about 17 pips.
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