FxWirePro
Short

Dont be bull trapped in EUR/JPY interim upswing, see more dips

FX:EURJPY   Euro Fx/Japanese Yen
239 3 4
Today's price jump may baffle your trade strategies but we are giving you a caution not to initiate fresh longs and get bull trapped in EURJPY's downtrend, these upswings are momentary and at any time bearish swings may resume.

We spotted out a bearish "gravestone doji " pattern at peaks of rallies at around 130.860 with leading oscillators to converge downward, during week also we had advocated bearish targets in this pair that has evidenced considerable dips (see price declines from 1st Feb that is when it has started dipping soon after our last article, refer below link for more readings on this).

http://www.econotimes.com/FxWirePro-EUR-JPY-seems-weaker-from-hereon-after-reaching-channel-resistance-%E2%80%93-shooting-star-on-intraday-evidences-dips-152819

While on the verge of this declining process back to back bearish patterns appeared (hanging man and gravestone doji at 130.870 and 130.860 respectively) to signify the more weakness in this pair.

We could continue to anticipate at anytime the bearish bubble can burst out again as you can observe even on the weekly charts, the price line has slid below 21 week moving average and hovering around channel resistance, while leading oscillator (slow stochastic and RSI ) has shown divergence to the recent week's rallies, which would interpret this as an early signal for selling pressures in the weeks to come.

Subsequently, RSI on daily terms has been directly proportionate to the current price behavior. Currently, RSI showing downward convergence from overbought zones (75 levels) with the dipping prices.

And same is the case on slow stochastic curve, it has shown %D crossover from above 80s on daily charts (current %D line flashes at 73.1450). So, one can eye on shorting opportunities upon the rejection of existing channel resistance at around 131 levels on a closing basis.

For intraday bullish speculation, aggressive bulls can use one touch binary calls for targets upto 131.15-20 but as of now the odds seem unlikely to hold this level so immediate profit booking is a must and don't carry forward the long positions (considering long term bearish trend ).

Hence, keeping 129.581 and 127.619 in mind bears can short this pair for downward targets as one needs to wait and see for the bulls creating better entry points for shorting opportunities as a result of overbought pressures.
forexmech
9 months ago
I am already short EURJPY. Thanks for this idea and clarification
Reply
Thet
9 months ago
Thank you for the nice set up.
Reply
ican_y
9 months ago
very clear
Reply
Ideas Scripts Chart
United States
United Kingdom
India
España
Italia
Brasil
Россия
Türkiye
日本
한국
Home Stock Screener Economic Calendar How It Works Chart Features House Rules Moderators For the WEB Widgets Stock Charting Library Priority Support Feature Request Blog & News FAQ Help & Wiki Twitter
Private Messages Chat Ideas Published Followers Following Priority Support Public Profile Profile Settings Billing Sign Out