EURJPY, Daily Chart , 22/02/13 @closing of trading week

eurjpy_daily_signal_220213

EURJPY is on an Uptrend but has just completed a Correctional Move down to the 50.0 Fibonacci Level and now it’s going to resume its Uptrend reaching at least the 127.69 price point where Correction started. So, we’ll place our Take-Profit Target @127.69 and will ENTER LONG @123.25 right at the OPEN of the next candlestick. The previous candlestick is a Spinning Top Bullish Reversal Candlestick when seen after a Downtrend as here.  We place our STOP-LOSS a few pips below Spinning-Top’s tail @122.00 which is a Strong Support Level. We get a Long Entry Confirmation by Stochastics which are at oversold level close to 20 and we also see a DIVERGENCE between price action forming a Lower Low and Stochastics forming a Higher Low. This is REGULAR BULLISH DIVERGENCE and gives a Strong BUY Signal. We’ll be risking 125pips for a profit potential of  444pips.  The Risk/Reward Ratio is  almost 1:4 which is fine.