Trading analysis of recent EUR/JPY trade
💡 LUX trading analysis
EUR/JPY trade analysis which was closed yesterday with a loss of -1.63%. The trade lasted 3 hours 12 minutes and covered -55.0 pips.
On the daily, four-hour and hourly charts there was a strong MACD signal to continue the fall, while the uptrend channel on the daily chart was previously broken after falling below 161.500 and breaking the EMA 200 level on the four-hour chart. Also, the EMA on the hourly and four-hour charts were above the price level, which suggested a further fall possibility.
I set my take profit above the EMA 100 level on the daily chart. The stop loss was set above the four-hour EMA 200 level in case it was broken and to avoid further losses 🛡
❕ Divergence on short-term time frames was not taken into account and in vain. You can see that shortly before the opening, a divergence began to form on the MACD, which eventually ended in growth.
💡 The conclusion that I could draw is that a further fall is not excluded and I may return to selling EUR/JPY later. Also, I would note the importance of considering both long-term and short-term time frames, as this can help you make money and not lose.
Watch trades on MYFXBOOK
