I am very bullish
on the Euro
and the stock markets. Besides the obvious trades of buying EURUSD
(which I have) and buying stock indices(which I have) another trade would be going long EURJPY
. I am looking for a correction in the dollar, but not versus the Yen. I think we are going to see a further consolidation on USDJPY
as the rising stock markets will keep the yen from gaining. Looking at the weekly chart on the right, you can see a correlation that got out of sync. My money is on the Euro
to strengthen up.
On the daily chart
, a beautiful bullish divergence
emerged and the impulse turned green. I am already long and looking to add.