EUR/JPY produced a bearish Inside Bar yesterday. The H4 chart shows that the price after making a bearish move consolidated around a level of support. It produced a bullish engulfing candle. However, as of writing, the price has been bearish in the current candle. If the candle comes out as a bearish reversal candle, the sellers may find an opportunity to go short in the pair.
Chart 1 EUR/JPY H4 Chart
The chart shows that the price made a bearish move after producing a bearish engulfing candle. It found its support at 125.280 and consolidated around the level. It produced a bullish engulfing candle closing within 125.550. The price gets bearish around the level, and it may end up producing a bearish reversal candle. The sellers may go short below the level of 125.280. The chart shows that the price has enough space to travel towards the South, offering a good risk-reward.
Trade Summary:
Entry: Sell below 125.280
Stop Loss: Above 125.550
Take Profit 1: 124.800
Take Profit 2: 124.600
Take Profit 3: 124.400