I placed this EUR/JPY long order a couple of days ago. It just got triggered overnight in the Pacific market hours. See Figure 1 for my entry chart. Note the following reasons for long EUR/JPY:
- Support trendline coincide with round number 130.00
- RSI in oversold territory and moved up
- EUR/JPY in a trading range with the MA's oscillating since April
EUR/JPY was testing 131.00 when I placed this order and I didn't think it would get triggered. I placed a full 100% position in this but 1/2 of my position has a trailing stop of 50 pips and it got run down within a few hours of entry. That 1/2 was out at 129.666 for a loss of 3.33 pips. I'm only left with a 1/2 position in this at the moment. In hindsight, that trailing stop was too close as the 3-hour ATR is 25-30 pips. Entry: 129.99, round number support Stop: 128.80, see Figure 2, just below recent low and support line Target: 134.00, see Figures 1 and 2. At the bottom range of a congestion zone. Reward / Risk = 401 / 119 = 3.4 > 3.