EURJPY: More Potential Downside

FX:EURJPY   Euro / Japanese Yen
This pair has been ranging in a 290 pip wide bearish channel on the 1H for the last 4 days. The upper trendline has been tested 4 times and the lower trendline twice. The announced QE programme for the Eurozone and the Greek elections this Sunday, with the Syriza Party leading in the polls (looking end to austerity measures and seeking forgiveness for part of the nation’s debt) give the euro             room to fall against the yen, leading to more potential downside for this pair.

PA just tested and respected the upper trendline and we have a Stoch line crossover, so I am looking to sell the high in this channel. Assuming it will continue its way down, I have marked two profit targets along the way, both just above daily support levels. SL goes outside the channel, 10 pips behind the marked resistance level . There are 190 pips on the line and the trade has a reward – risk ratio of 2.8!

UPDATE: PA gapped down, hit TP1, pierced through the support and almost hit TP2 before reversing.
You don´t need to be a weatherman to know which way the wind blows - B. Dylan
UPDATE: PA gapped down, hit TP1, pierced through the support and almost hit TP2 before reversing.
EURJPY probably hit 130 - 127 levels.
I am holding the pair with profits locked currently hoping to hit 128.15 TP.
+1 Reply
Thanks for your comment. We agree on the direction of the pair, let´s hope we both make a good amount of pips! If PA allows it, I may go for a 3rd TP at the 129 handle. We will see.
+1 Reply
Thanks for sharing. I think there are multiple potential opportunities developing in many of the YEN pair. In the case of EURJPY possible drop to 130-129 as you have shown ans decent retracement then another big drop which could be conservatively 50% retracement of the entire move up of the 2011 low. May be more. Here is what I mean shown in the chart
+2 Reply
Your scenario is certainly possible. I would not be surprised if BoJ would come with new / additional measures this year to up Japans inflation to the desired level. This would also bring a new dynamic to this pair. As I always say: I am but a simple day trader, its difficult for me to look a whole week ahead for certain pairs, not mentioning a year or more on a weekly chart. But I am happy this trade idea aligns with the first part of your scenario. Thanks for the comment!
DanV PRO JasperForex
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