Long or Short: Short
Entry Point: 121.50
Stop Loss: 122.10 (above previous high)
Profit Target/s: 119.70 (near previous low)
Reward-to-risk Ratio: 3:1
Risk percentage: 1.0%
Indicators used: Stochastics (14,3,3)
Trade Rationale:
For fundamentals, I’m counting on more QE rhetoric from more central bankers in the next couple of days as risk aversion on the lack of progress in the euro zone takes its toll on the markets.
For technicals, I’m using the good R:R that I spotted, as well as a bearish divergence and an overbought Stochastics signal on the 1-hour chart.
Trade Adjustments:
I’ll stay tuned for any BOJ intervention talks (highly doubtful next weeK) and news from the euro zone.