Direct from the desk of Dane Williams.
Do you understand your correlations?
If the Swissy is paying out on shorts, then that means that the Euro is more than likely going to be paying out on longs.
With that in mind, we were also this week buying EUR/JPY off daily support, playing for any rip higher that the market may give us.
So let's have a look at how our EUR/JPY long trade panned out below.
EUR/JPY Intraday View
We'll once again skip the daily view as you can just click the link to our last EUR/JPY blog above, and see the daily zone there.
To put it simply, we're above higher time frame support on the daily chart (shown by the grey box on all of our charts), so we're only looking to be buyers.
As for the intraday trading setup we were trading, do you remember this one?
EUR/JPY Hourly 2:
You can see that on Thursday and Friday last week, price has come back to retest our intraday zone and given us a second chance to get long.
I've thrown the 1:3 risk:reward levels onto the chart just for reference.
Got your refresher?
Now let's take a look at how the EUR/JPY long trade played out on the updated hourly chart below.
Updated EUR/JPY Hourly:
BOOM!
Add another successful 1:3 trade to start the week.
It's certainly been a good one.
Hopefully you're starting to see the power of my simple forex support and resistance trading strategy.
All you need to do is find higher time frame support/resistance zones to tell you which direction to trade in and then zoom in to an intraday chart to refine your entry.
Best of probabilities to you,
Dane.
FOREX BROKR | LeoFinance Blog
Daily market analysis.