EURJPY - Draghi to deliver a dovish press conference tomorrow?
The Euro has been gaining a lot of strength in 2017 since the possibility of potential taper in 2018. Coupling with the weakness on JPY, we have seen EURJPY rallied over 13% from the low at 115 in April to the high at 130.60 recently.
On the daily timeframe, we have seen price reaching the minimum fibonacci extension expectation, and thus believing that we might see either a retracement or reversal soon.
Looking on a lower timeframe - 4-hourly, we saw a first impulsive move, and it is now completing a corrective move. This gives me a further indication that we may potentially see selling pressure on EURJPY.
And the catalyst can just be a dovish Draghi tomorrow.
Personal bias - look for short opportunities on EURJPY, at least for the short term targeting 127.50 region.
*Make sure you have a plan to trade this pair.
On the daily timeframe, we have seen price reaching the minimum fibonacci extension expectation, and thus believing that we might see either a retracement or reversal soon.
Looking on a lower timeframe - 4-hourly, we saw a first impulsive move, and it is now completing a corrective move. This gives me a further indication that we may potentially see selling pressure on EURJPY.
And the catalyst can just be a dovish Draghi tomorrow.
Personal bias - look for short opportunities on EURJPY, at least for the short term targeting 127.50 region.
*Make sure you have a plan to trade this pair.