The eurjpy pair moved below the 61.8% retracement level and this may be just the consolidation area that we need for a spike higher in what seems to be at least a simple flat. If that is the case, the move to the upside should be an impulsive move, or a five wave structure, so staying on the long side from below 61.8% with a stop loss at 80% retracement is recommended.
As for the take profit, these kind of patterns rarely form a failure (meaning the c wave to the upside is not taking the highs in the previous wave a green) so there is a good chance that we will see an impulsive move stretching above the highs in wave a green.
Looking at the majors that are influencing this currency pair, namely the eurusd and usdjpy pairs, I would say the picture is mixed with eurusd having difficulties to rise more than 1.08 in the very short term while the usdjpy is very well bid around the 123 level. I would say the key will come from the November NFP release which is the closest important event we have.
Therefore, I am favoring a long trade from current levels with stop at 128.50 and targeting 140.50 area.
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