Introduction:
We are calling this right on the opening of the markets, so tread carefully and analyze properly.
After last December's US economic uncertainties (US-China trade wars and US government shutdown), JPY played its role as the world's safehaven currency and rallied back to its mid 2017's levels. Since January this year we've been witnessing an indecision as to whether it'll continue its move downwards or pullback to its previous 130.000 levels on the FX:EURJPY . Price was strongly rejected from 127.500 and bounced up from 123.500, as such downwards move was also fueled by a substantial EUR dump. Even though this was nourished by both currencies' behaviour, it failed to create a higher low and thus confirmed the suspicions that we now face a ranging market, instead of a strong trending one.
Strong Update from Our Last Short Idea:
President Trump tweeted about an increase in tariffs from Chinese products this weekend, causing the market to gap tremendously. However, EURJPY sat precisely on the support. As price usually follows the path of least resistance, we expect a bounce from this 123.600 levels, as it'd take big and momentum volume to break the support. We trade what is usually more likely to occur, and with the best risk/rewards involved.
How to Proceed:
Our team has already opened a long position on this level
Take Profit:
Our take profit target is 123.000. They can be dynamically changed, i.e., according to live price action, should circumstances change.
Stop-loss (Invalidation of Analysis):
Our stop-loss here is 123.
Side-notes:
Please keep in mind that the markets have been reacting strongly to news these days, specially on smaller majors, such as the NZD and the AUD, which could create instability and affect FX:EURJPY by correlation and arbitrage moves. We are trading the whole forex system here, not only a pair. These positions should be watched closely.
Please leave your comments below to inspire us to continue our work and don't forget to follow us! Have a great trading session!
We are calling this right on the opening of the markets, so tread carefully and analyze properly.
After last December's US economic uncertainties (US-China trade wars and US government shutdown), JPY played its role as the world's safehaven currency and rallied back to its mid 2017's levels. Since January this year we've been witnessing an indecision as to whether it'll continue its move downwards or pullback to its previous 130.000 levels on the FX:EURJPY . Price was strongly rejected from 127.500 and bounced up from 123.500, as such downwards move was also fueled by a substantial EUR dump. Even though this was nourished by both currencies' behaviour, it failed to create a higher low and thus confirmed the suspicions that we now face a ranging market, instead of a strong trending one.
Strong Update from Our Last Short Idea:
President Trump tweeted about an increase in tariffs from Chinese products this weekend, causing the market to gap tremendously. However, EURJPY sat precisely on the support. As price usually follows the path of least resistance, we expect a bounce from this 123.600 levels, as it'd take big and momentum volume to break the support. We trade what is usually more likely to occur, and with the best risk/rewards involved.
How to Proceed:
Our team has already opened a long position on this level
Take Profit:
Our take profit target is 123.000. They can be dynamically changed, i.e., according to live price action, should circumstances change.
Stop-loss (Invalidation of Analysis):
Our stop-loss here is 123.
Side-notes:
Please keep in mind that the markets have been reacting strongly to news these days, specially on smaller majors, such as the NZD and the AUD, which could create instability and affect FX:EURJPY by correlation and arbitrage moves. We are trading the whole forex system here, not only a pair. These positions should be watched closely.
Please leave your comments below to inspire us to continue our work and don't forget to follow us! Have a great trading session!
