EUR/JPY: Poised to rise more in a risky zone

May 8

EUR/JPY: Poised to rise more in a risky zone

EURJPY broke out of a small bullish triangle pattern.

Considering where this triangle pattern was created is increasing the chances that EURJPY could rise as a minimum up to the old structure zones.

Regardless of the technical chart, the price is supported more by the fact that the BOJ is not intervening in the market with enough liquidity to change the trend of the XXXJPY pairs.

As long as the BOJ will only threaten to intervene and take no further steps, all XXXJPY pairs will continue to rise higher.

Very risky trade...

You may find more details in the chart!
Thank you and Good Luck!

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May 8

Trade closed: target reached

May 9

Note

EURJPY: The price reached the first target and is likely to rise further from the current zone despite its strength.

This move is related to the actions the BOJ is taking regarding their currency. Actually, they are doing nothing and that is why the market continues to grow slowly.

Also, the small bearish move of almost -50 pips created during the Tokyo Trading Session was created due to some comments from the BOJ:
"BoJ board: BoJ to closely monitor recent yen weakness for policy"

It is clear that the market again expects interventions and reacts quickly.
However, as long as the BOJ will only send comments, all XXXJPY pairs will only go higher.

May 10

Note

EUR JPY continues to rise...seems unstoppable

The EURO is advancing across the currency board today and that is not helping the JPY at the moment.

The Bank of Japan continues to sleep and it is not clear what they want to change or what they have changed in their monetary policy statement.

Although they changed IR after a long time, it did not support their currency.
If this currency devaluation continues, the impact of interest rates would change to zero or rather to more negative compared to the previous situation.

May 15

Trade closed: target reached

All reached