EURJPY

I have been following this EURJPY pair since January 2013.  When I looked at the price chart, the trend is bullish.  So, everytime I want to enter, I look for for the buy signal from my set of indicator. I followed technical indicators suggested from the Forex Factory thread.  The indicator rules is as follows. The chart time frame is on daily, hourly and 15 minutes.

1)    Two  EMA 8 day time frame, one is on high and the other is low.

      This is for the buy or sell signal.  If the price is closed on top of EMA8 it is a strong buy signal.  If the      price is closed below EMA8, it is a strong sell signal.

2)    EMA 72 on close

      If the EMA8 is crossing the EMA72, it is an added reason to buy or sell.  If it crosses to the downside, then sell signal, if it crosses to the upperside, then buy signal.  Another thing is that the if the price actions rejects EMA72 and heading to the upper side, it is a buy signal.  If price actions rejects EMA72 and heading  to the downside, it is a sell signal.

3)    EMA 200
       This is for general trend indicator.  This indicator is used by most banks and financial institution.  I helps to justify whether the decision I made is on the right track.


For buy entry, price action must close above EMA8 (high) and rejecting the EMA72. I use the 15 minute time frame for decision.  The target profit is the closes round number of price available. For example 121.00,  121.50, etc.  The stop loss depends on you yourself.  I myself do not use the stop loss, I leave it open.  Sooner or later, the target will be reached.  But bear in mind, must trade use the lowest lot that your margin permits. Usually I trade 0.1 lot and increasing by increment of 0.01 if the capital is growing.

For sell entry,  price action must close below EMA8(low) and rejecting the EMA72.

The other setup for sell and buy entry is by waiting for the crosses of EMA8 and EMA72.  If crosses downward, higher chance for sell entry, if upward, buy entry.

Happy trading.