Appearance of a most likely also suckered in fresh shorts.
Watch for this to run up to the 136.18 area, that is 50 pips up from our current location.
**5/20 update: this long call was only good for 20 pips, never made it to the 136.18, and monster 100+ pip short bar took all traders by surprise. This is the first target we did not hit to the pip in 30+ days (was still a profitable long).
We were able to get a few mixed trades since this one, are short now, looking for 134.00/133.93 as target, and have limit longs sitting around the 133.77 area for move back up to 135/136's.**
could you please explain why you say 'should continue to our 137 to 140 areas'? i honestly don't see any information on the chart that would indicate the market is poised to go that far up. what exactly are you looking at? am looking at daily and on up and it's all a no-go for now.
1.) shook off most longs late to the party
2.) cleared stops under the 5/13/2015 lows
3.) sucked in fresh shorts
As mentioned before, in observing the quirky habits of EUR/JPY over the last 5 years, it flashes certain market "tells" which gives true direction, even when we face 100+ pip shakeout moves like overnight.
but i wanna go back to what you say re the time you spent studying EJ because i think that is indeed a key point for anybody reading this. it reminds me of my thought process as well when i was going through the growing pains of becoming a trade. one day it dawned on me that the ccys, as they unfold in time, are actually telling a story. and so our task is not just merely identifying turning point patterns, but being able to read the story the ccys are telling. this provides us with an insight that goes beyond mere technical analysis. and only a lot of time spent in front of the screen will unlock this secret chamber. ;)