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
Source: Saxo Bank
5-year EURJPY chart
Source: Saxo Bank
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