Euro/Yen’s Bounce Off Resistance on the Hourly
Entry reason (1st trade): Low volume up bar on resistance, with weakness behind
Close reason (1st trade): Demand signal
Entry reason (2nd trade): Low volume up bar and failed test
Following up on last week’s post about Euro/Yen, upon reaching the resistance, this pair continued to show supply just above the zone at 123.44, and the background soon turned weak.
- First short trade on the break of a low volume up bar, inside the weak zone. Closed when there was a demand signal, and the traded end up being barely break-even.
- I took another short trade on the break of a low volume up bar. This was also a failed test, which showed further supply. Holding the trade until the support at 120.900, or further strength in the market.