Trade view / 10 January 2014 at 12:58 GMT

Break of 143.17 to take EURJPY higher intraday

Trade idea background

EURJPY continues to trade in a sideways-congestion zone, after making a high of 143.17 on January 8. A break above that resistance should give scope for accelerated upside price action, likely taking out stops for weaker shorts in EURJPY. We will only establish the long positioning in EURJPY at the break of that level, however.

Trade management and risk description

With the approaching, payroll data from the US, we keep the overall risk exposure to mimimum and size this trade as a quarter-nominal trading-size order. Further, as the price action can potentially be very volatile and lead into spikes and poor entry order fills around the non-farm payroll data publication, we will avoid getting a fill right over the numbers. Towards this effect, we will cancel our entry order ahead of the US data if the pair is trading right above the 143.00 handle and is too close for comfort to being impacted by a poor fill. We will update here on any potential order cancellation. 

Trade idea parameters

Entry: buy quarter-size order EURJPY stop bid at 143.17.

Stop: sell EURJPY stop offer at 142.96.

Target: first target is at 143.38, where we will lock in half gains and move the stop to entry. Second target is at 143.54.

Time horizon: intraday.

Short-term EURJPY chart

eurjpy short term

Source: Saxo Bank

5-year EURJPY chart

EURJPY Long Term

Source: Saxo Bank

Disclaimer:
Non-independent investment research
This investment research has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Further it is not subject to any prohibition on dealing ahead of the dissemination of investment research. Saxo Bank, its affiliates or staff, may perform services for, solicit business from, hold long or short positions in, or otherwise be interested in the investments (including derivatives), of any issuer mentioned herein. » Read more

(mo)

1y
Waheed786 Waheed786
Whacky NFP numbers
1y
Waheed786 Waheed786
nice stategy Antero

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