After a day off from the blog yesterday, we’re back onto the forex currency crosses today with a nice level of confluence in EUR/JPY.
Here you can see the higher time frame confluence of resistance that I’m talking about on the daily chart. Price has not only hit the pretty obvious trend line resistance, but also the horizontal resistance zone.
Both are pretty obvious levels, with the trend line resistance speaking for itself and the horizontal zone formed by a retest of previous swing lows.
Once we zoom into the 15 minute chart, we can look for levels to possibly get short.
I try to usually wait for the higher time frame resistance zone to clear, just to make sure that the level has in fact held, and it is shorts that we should be looking to trade.
As you can see marked in green on the intraday chart above, the level has cleared and we were presented with this little short term retest to manage our risk around and possibly get short off of.
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Dane Williams – @VantageFX
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Source: Vantage FX Blog