The EUR/JPY has been in a strong downtrend ever since a weekly Bearish Engulfing Candle of 2nd February 2018. Zoom in to the hourly chart and we can see more opportunities for bearishness, spotting a previous support level turned resistance.
The POC zone is 117.67-77 [W H3, D Cm, 7/8, Middle Bollinger Band, Previous Week Close, Lower Channel (Support Turned Resistance)]. However, we can see that price has since moved away from the POC zone. This is because CAMMACD system has waited for a candle close to determine a T-88 entry cue, a pinball rejection from the 88 EMA. I am personally entering this position at half risk, and if price retraces back to the POC zone, would enter another position at half-risk, making it a total of 1 full risk position. Alternatively, more conservative traders can wait for price to retrace into the POC zone.
Targets are 117.40 [D L3, 5/8], 116.90 [Weekly Open, 3/8, D L4, ATR Projection Low]. The EUR/JPY has potential to reach 116.60 [Previous Swing Low] given it’s historical volatility.
A candle close above 118.30 invalidates this analysis.