That was the same thing that happened again on the 4th of Aprl 2011; but this time the setup was even more stronger and price is verylikely to fall. Let me explain.
If you look at the chart above, you will discover that the long bullish candle cuts across the ema 200 but could not close above it; (it failed to close above the ema 200; this signifies that there are strong bearish sentiments at that area. Also remember that that area is also a very strong resistance area and now we have the ema 200 making it a very strong reversal signal.
It will also interest you to know coincidentally, that resistance area was also fibonacci 61.8, thereby making the setup even more stronger.
After seeing all of this confirmations; I decided to SHORT USDJPY (DAILY CHART); placing my stop loss few pips above the long bullish candlestick.
No take profit target because I intend to watch the trade and take my profit manually.
I hope you have learnt something from this trade setup.
Ensure you check this site everyday for my latest trade setups plus all the explanations for your own trading success.
God bless.
Please post your comments.
