EUR/JPY — A Week-Long Rectangle on H4 Chart
June 2, 2013 (Last updated on June 4, 2013)
While the position opened using the bullish pennant pattern breakout on EUR/JPY is still running, the currency pair formed a new figure on a shorter timeframe. The rectangle, which spans from May 24 and is about 200 pips high, is a two-way breakout opportunity. The pattern is clearly visible on H4 chart.
The image below shows the rectangle with two horizontal yellow lines. At the distance of 10% of its height, the cyan lines are positioned for potential entry. Green lines at 100% height from the yellow lines are the potential take-profit levels. Both entry and TP lines have been added using the ChannelPattern script. I will use the low/high of the breakout bar for my buy/sell stop-loss on this pattern. I will also close my EUR/JPY bullish pennant trade if this rectangle breaks to the downside.
You can download my MetaTrader 4 chart template for this EUR/JPY pattern. It can be traded using my free Chart Pattern Helper EA.
Update 2013-06-03 16:40 GMT: Entered short position at 13:23 GMT. The entry price is 129.963; stop-loss was set to 130.541. Current TP is 128.203 but will be going down gradually. Also exited my previous bullish EUR/JPY position.
Update 2013-06-04 6:21 GMT: Position exited via stop-loss @ 130.544 at 5:48 GMT. EUR/JPY is not my best pair, apparently.
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