Trade Of The Day: EURJPY 2015 Double Bottom?
Trade Of The Day – Fundamental: EUR fell further against JPY after European markets opened yesterday to print a nine month of 127.05. All eyes remain focused on the China markets, and another weaker than expected fixing sparked another messy selloff in asset markets causing the second halt in trading this week.
Technical: While 128.20 caps intraday upside reactions, expect a grind lower to retest 2015 lows at 126.50’s as the next downside objective. Only a breach of 129.50 eases immediate downside pressure.
- I am watching price action in EURJPY as price tests the 2015 lows, there is the potential for the a double bottom pattern to develop, this structure is given further credence by the symmetrical structure of the decline to test the 2015 lows as highlighted in the chart below.
- I will venture long on a breach of yesterdays highs, with a protective stop placed below today’s low, initially targeting a retest of 130 ahead of the next upside objective at 132.
- Trading Update – Long from 128 stops to entry risk free position
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