Trade /
2h
federicovp
Sold 50,000 EURJPY FX Spot @ 129.624
Medium term
Trade view /
22 September 2016 at 13:39 GMT
EURJPY downside in view
Instrument:
EURJPY
Price target:
Market price:
Background
Yesterday I suggested USDJPY was about to take another dive basis a "cloudy" outlook. It did. We not only gave back the gains seen on the Bank of Japan "announcement" but we also saw further weakness later on the Federal Open Market Committee statement.
EURJPY Daily "Ichimoku Cloud" chart:
EURJPY weekly
— Edited by Michael McKenna
Yesterday I suggested USDJPY was about to take another dive basis a "cloudy" outlook. It did. We not only gave back the gains seen on the Bank of Japan "announcement" but we also saw further weakness later on the Federal Open Market Committee statement.
There has been some semblance of recovery today but I'm classing rallies as selling opportunities for now, and would be of the same thinking in EURJPY which today tried to recover and topped out at an interesting area.
Management and risk description
Once the first target is hit, move the stop to entry. It's a pretty tight stop to start with anyway, versus the potential reward if all three targets are hit.
Parameters
Entry: sell at market (currently 113.13).
Stop: above 113.60.
Targets: 112.10, 111.00 and 109.60.
Time horizon: one to two weeks.
Management and risk description
Once the first target is hit, move the stop to entry. It's a pretty tight stop to start with anyway, versus the potential reward if all three targets are hit.
Parameters
Entry: sell at market (currently 113.13).
Stop: above 113.60.
Targets: 112.10, 111.00 and 109.60.
Time horizon: one to two weeks.
EURJPY Daily "Ichimoku Cloud" chart:
EURJPY candlestick chart:
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27 September
Despite not "getting going" yet I still like this trade and the recent failures at 113.50-60 prove we've got the stop in the right place.. Well done to those who are in higher up. ;-)