EUR/JPY 4 hours (Long/Buy)
Long or Short: Long
Entry Point/s: 116.50 (.382 Fibs) or 116.15 (.5 Fibs). But I will only buy if I see support hold on the Fibs levels and parsar below price. If not, no trade for me.
Stop Loss: 115.70
Profit Target/s: 121
Reward-to-risk Ratio: 5.6:1 -10.7:1
Risk percentage: 1%.
Indicators used: ParSar (step: .02, max 0.2), Fibionacci
Trade Rationale: I heard that the European Union and the IMF could settle the Greek debt issue soon so I’m expecting the euro to rally when they release the second bailout. Also, S&P or Moody’s (I’m not sure) threatened to downgrade Japan’s credit outlook which should be bearish for the yen.
Technicals: The EUR/JPY is on an upward trend (proof is rising trendline and parsar below price). It also looks like it’s forming an ascending triangle which is a bullish pattern usually.
Trade Adjustments: I’m gonna add another position when price breaks the resistance around 117.29.