We went long after detecting a bullish candlestick but price reached 140 level, a strong resistance, and retraced. Hence, we got stopped out at 139.1.
I just took a long EURJPY position with stop loss 138.96, take profit 140 and risk reward 1.5. JPY is weak and i am flat on EUR, it is still reasonable to long EURJPY. Price is well supported at 139 and i observed 2 reversal signals, hence there is a probability that price will bounce from here. In addition, price broke above short term downward resistance.
EURJPY has reached our profit level at 139.8-140 level and we have decided to close the position promptly since resistance is strong at 140 level. For this trade, the net gain is 1.2%.
Trade was closed as profit objective is met, price hit take profit level at 137. Risk reward is slightly more than 1 and net equity gain is 1%.
As mentioned in the previous post, i did not manage to enter EURJPY since it moved away from the price level i wanted to long at. Price just retraced and i managed to enter at 136.48. However, i feel that the risk reward ratio of 1 is not as good, will see how this goes, may close it prematurely if there is a need.
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