[TW] 9-22-2012 EUR/JPY (Long) by longtermtrader

After a short hiatus, I am back! In any case, here’s a nice setup I spotted on EUR/JPY.

EUR/JPY, 4-Hour


Long or Short: Long
Entry Point: A close above consolidation (102.20, most likely)
Stop Loss: 99.50
Profit Target/s: Targetting former highs initially, but may ride it further depending on PA
Reward-to-risk Ratio: Will depend on my trade management
Risk percentage: 1.5%
Indicators: 100 SMA, RSI (9), Fibs

Trade Rationale:

  1. Consolidation above the 50% Fib
  2. RSI moving higher
  3. BOJ announced an expansion of its QE program
  4. Optimism from ECB’s decision to buy unlimited amount of bonds
  5. Trend still bullish (above both 100 and 200 SMA)