EUR/JPY and GBP/JPY profit analysis
After clear MACD signals (crossing the signal line and pronounced convergence) on the hourly chart, also price line position under the EMA 100 and EMA 200 lines, gave me reason to open a sell trade.
I took into account the possible risks that could be associated with support at 142.00 and it can be noted as EMA 100 on the four hour chart. But having shown patience and trust in my trading system, I was in no hurry to close the trade too early, during the pullback of 141.840 – 142.250.
In addition, I saw that the Euro Dollar (correlated currency pair for the Euro) did not receive enough support to break the trend.
The GBP/JPY is a currency pair that correlates with the EUR/JPY. The trade was processed according to a similar scenario. I traded the downtrend on the hourly chart even though the MACD was not as clear as the Euro Yen. I took this fact into account during risks calculation.
For both trades the stop loss levels had been placed above the nearest resistance levels.