 Hi, my name is Leon Roe currency trader and trading coach at trading 180.com and welcome to this video on the euro yen technical setup right and It's gonna be going over this trade setup from a technical perspective and also from a Fundamental perspective and what you should really be looking out for when it comes to trades as a technical analysis is Just displaying what traders will see as value in the market, right? But from a technical perspective What we've got is what I would consider an a1 Typical a1 setup, right? So When I say a1 I'm talking about just just one of the great technical setup So what you have is You know, first of all, we're at a A demand zone. So you can see we're trying to determine the supply and demand One of the things that we need to do when we look at supply and demand is determine value And demand zones and supply zones are always areas of potential value, right? so we've got demand zone here in fact we pierced through the top one we can delete that we came down into the The second demand zone right down here a bit bit lower demand zone or what we could have done is just basically drawing it like this Secondly What we've got is we need to determine the supply and demand order equation, right? So supplying why they're going to be more supplier orders than sell order So in demand orders and why they're going to be more demand orders or buy orders then supply orders, right? So Um I recently released a course which is probably about 50 minutes long 55 minutes long And they talk about supply willing supply and willing demand and for supply and forced demand in an area, right? And what we look at is horizontal support and resistance diagonal support and resistance and dynamic support and resistance and why um, this would be um, you know, uh, I suppose the motive is behind Why traders are forced to enter and why they are forced to exit and why they are willing to enter and why they are willing to exit? And that all uh culminates into the forced supply and demand area and at the end of the day we need to try and uh, I suppose, um Guess or uh, what's the word i'm looking for? Um, I suppose it comes out to probabilities um Get the probabilities on our side as to why we should have more demand in this area than supply and supply Then demand and prices as you can see are starting to react if we go down to a lower time frame We're starting to see um prices react off of this area as we have horizontal diagonal and also dynamic Dynamic in the sense that we have this moving average 200 I think that's the uh sma it's either the ema or the sma moving average all within this one area Right, so there's gonna there should be a lot of um Demand coming into this area from a technical perspective But what you should be doing first and foremost is looking at um fundamentals and sentiment now from a sentiment perspective um We have um Italy budget crisis so early angst grips markets after populist refuse populists refuse to retreat uh millimeter on budget amid um clash with e you right so This is pretty much today's um, you know news and uh What's going on in regards to europe? And uh, there is an article as well, which I'll link in the description box below Everything you need to know about italy's budget crisis which threatens to trigger A major market meltdown, right? So bullet points are a fresh political crisis is brewing in italy other plans for the coalition government's first budget The coalition late on thursday agreed to set italy's budget deficit at 2.4 percent of gdp And this is far above the 1.6 Level that technocratic finance minister giovanni tria had lobbied for and put italy on a collision course With the e you and italy risks falling foul of e you fiscal responsibility Rules so there is some um some risk going on into the market now Europe obviously um in the midst of a bit of a potential crisis And one of the currency pairs that you really want to be looking at trading Or buying potentially in the midst of a crisis and risk of sentiment is the japanese yen Which tends to benefit with uncertainty, right? So why am I telling you this is because we need to look beyond a price chart when looking at just technical analysis, right? yes, this is a really good setup, but um Beyond the price chart and what's going on? You know the big money is not looking at whether this is a great setup technically or not, right? They're looking at a potential value and the value of the euro could go down As a flat of equality potentially on the japanese yen, right, which could push prices um further Down if a budget doesn't get agreed now if something does happen as far as there is an agreement Some point today tomorrow within the next week or two then we could see obviously the euro You know bounce from here, so this is a This is where we're going to be keeping our eye on in order to potentially take a trade or not Now you've got you know two options pretty much You can either stay out or you can jump in now if you're going to jump into a trade and you see a Technical setup on a lower time frame chart, right? It isn't one for me yet, but if I do see a technical You know setup Then I could just enter at a half position And I normally would or even it's the quarter position you can kind of scale in and see Where it will take you as you know, like I said and the news announcement come out at any moment and say And they could say oh well, you know, we've agreed a budget deal and everything is you know good again in the euro And in that case you will have the euro, you know rally etc and This trade looks like would look like you know on hindsight a Brilliant trade to take but when the point is is that you should always be looking at What's going on in the market? Don't just blindly take trades just because you see something on a technical price chart If you want to have an extra edge on your side I mean if you do have an edge within the markets and it's tried and tested Then you know be my guest, but if you want to take your trading to the next level, right? It's always good to look at the fundamentals and sentiment and there was a free fundamental and sentiment course available for you which I have produced and the link is in the description box below and It should put you on the right side of the market more often Then not and give you that extra edge beyond what everyone else is seeing on a price chart. So There's a setup. There's a level and It's just looking for potential entries to the upside If you're looking to buy the euro but keep your eye on the political situation and just minimize your size If you do want to enter at At this level if not, then we just look for levels Below right if we're looking to be buyers of the euro And if we're looking to be buyers of the yen You can actually wait for maybe potentially a pullback before looking to get short So, um, hopefully that helps if you have any questions just leave a Comment don't forget to comment. Even if you just want to say something nice About the analysis, uh, like subscribe and share with your fellow traders. It helps. Uh, take care