The Bank of Japan meets during Tuesday's Asian session and we expect volatility to occur during and beyond the meeting. As things stand today we expect to see a stronger JPY for this meeting and we are looking to earn some nice pips (about 300 pips!) on our trade idea.
Our trading plan is simple... use an order to get in the best possible price, everything is explained below but I need to warn you before I continue, if you are to be a winner in the markets, you MUST make your own, independent, analysis on this and every single trade idea!
There is an important update I want to cover in this post. We recently launched a new trading room and I must say, working has never been better! Words cannot explain all of the features well so here is a quick screenshot of the room.
Here is some info,
You can use the web platform or download the system directly to your PC and mobile (android & apple)
The downloadable system is light and small but exactly the same as the web app so that makes it super easy to use!
We have a super and very friendly/supportive traders chat room
The rest of the rooms are designed for skill development, such as the "Education" room and the "Breakout system" room. In these two rooms we release private videos for specific education.
We will release a video explaining all the features but you are welcome to join the room for a monthly enrollment fee of 50 euros.
Now lets get back to the trade idea.
EURJPY Daily Chart
(click on image to enlarge)
On the daily chart system breakout occurred already last Thursday, currently price action is at a key support level that MUST be broken before the full breakout can be confirmed. Nevertheless, the system has given us a signal to take this down but when you see the 4-hour chart you'll really know where the best "get in" price is.
The technicals so far indicate that this could be a BIG mover, around 300 pips easily this week if not more. If the support zone (white + yellow) is broken then I expect aggressive selling to occur.
The current big fundamental movers are,
1. Issues in Spain
2. Tomorrows Bank of Japan meeting
I believe that the BoJ will give then YEN a boost tomorrow, if you are new to the breakout system then I advise you avoid trading fundamentals. In regards to Spain, I don't think the story is over yet, the Catalonians won't give up easily so I expect this to cause more issues to the EURO.
Lets move a scale down to the 4-Hour chart.
EURJPY 4-Hour Chart
The double top can be seen on both charts I just didn't want to add to much info on the daily chart. As you can see the white support level seems to remain intact at least for now, I think that the best possible entry is a reversal to the 60% level of recent price action and then take the pair down. I am scaling this trade so I already have 1 position and I added a sell order at the 60% level, which is at 132.830.
In regards to the SL area, I recommend a stop at or around 133.750.
Remember, manage your risks and the profits will take care of themselves.
If you have any questions feel free to mail me on firstname.lastname@example.org
I just want to take this opportunity and wish everyone a very successful trading day and week! Make the most of it!