Short term
/
Buy
Trade view / 07 March 2018 at 7:50 GMT

Buying dips in EURJPY for a higher counter-trend move

Analyst / PIA First
United Kingdom
Instrument: EURJPY
Price target: 132.45
Market price: 131.17
Background

USD index: We are close to a critical point. There is scope for further selling towards 89.20-88.80 zone to possibly form a Right Shoulder of a bullish reverse head-and-shoulders pattern. The intraday bias is to sell into rallies.

USD Index
Source: Saxo Bank

Looking away from USD majors to EURJPY today as buying dips offers ample risk/reward in a counter-trend move. 

Monthly: In a huge triangle formation. Stalled at a previous congestion zone with levels above the Ichimoku cloud finding sellers. With the presence of a bearish Outside Month, the long-term outlook is negative. Last month’s Marabuzo (mid-point from open and close) is located at 132.76.

EURJPY M
Source: Saxo Bank

Daily: Posted a Demark correction nine count with level under our bespoke support zone (129.58-129.41) finding buyers. Bullish Outside Day posted at the low. This often indicates the change of a trend. The rally has stalled close to a previous congestion zone. What was support, now becomes resistance. There is ample scope for a further correction lower to buy into. 

EURJPY D
Source: Saxo Bank

Intraday (30 minutes): Expect the move lower to be mixed and volatile. The 78.6% pullback level of 129.82 is close to bespoke support at 129.60. We look to buy in this zone; although we expect limited upside (after the strong initial selloff), buying dips offers ample risk/reward.

EURJPY 30
Source: Saxo Bank

Parameters

Entry: buying at 129.65.

Stop: 125.65.

Target: 132.45.

Time horizon: medium-term.

— Edited by Michael McKenna

Non-independent investment research disclaimer applies. Read more
A compiled overview of Trade Views provided on TradingFloor.com is found here
07 March
usxau usxau
Good morning Ian! Happy manic Wednesday! ;) Great trade idea! Thanks for sharing! Have a great trading day! ;)
07 March
Ian Coleman - First 4 Trading Ian Coleman - First 4 Trading
GM Sab... and you. Enjoy and good luck ;-)
07 March
alki alki
Good morning. First attempt to open this trade idea returned an error page with the message „Wild Goose Chase”. Definitely SaxoBank has its own ways with words .-)
07 March
Ian Coleman - First 4 Trading Ian Coleman - First 4 Trading
LOL... morning Alki
07 March
Edgaras Edgaras
GM Ian, stop 125.65 is that correct?
07 March
Ian Coleman - First 4 Trading Ian Coleman - First 4 Trading
128.65... sry
07 March
Keith Thomas Keith Thomas
Good morning everyone. I've been following Ian's calls on here for a few months but this is my first time to join in. I'm located in Bangkok. I like this trade idea, but because the entry price is 160 pips away, and price is forming a head and shoulders at the 200 day sma (1h chart). plus it's risk off, could a short to the long entry price be viable?
07 March
Ian Coleman - First 4 Trading Ian Coleman - First 4 Trading
Hi Keith. Nice to meet you. That is definitely possible. I will not take the trade as I work of a grey box system that highlights buying dips at the moment
07 March
John22 John22
Mr Ian, can I have the range for today EUR/USD? Thanks
07 March
Ian Coleman - First 4 Trading Ian Coleman - First 4 Trading
not sure where the offer ill be .. we are looking to buy dips 1.2365
07 March
John22 John22
thanks very very much

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