Day trade
Trade view / 13 July 2016 at 6:05 GMT

EURJPY: Overbought but signals point to buying dip

partner and technical analyst / 3 c analysis
United Kingdom
Instrument: EURJPY
Price target:
Market price:

Tuesday’s signals were outright bullish and these were confirmed with a second strong up-day in a row and a gain of almost three Big Figs, the most positive two-day performance for sentiment in over three years, since April 2013. Prices have rallied above their 13-day moving average rate and towards their 50-day line. This is all positive, but with intraday sentiment overstretched signals for Wednesday are pointing to buying dips only.

Management and risk description

Buy dip only and if executed and market rallies to target, raise stop to entry point.


Entry: Buy at 113.69, yesterday's opening trade.

Stop: 113.00, a 62% pullback to the gains posted since Friday's low.

Target: 116.43, yesterday's high and 117.24, a 62% recovery to losses since three- week high.

Time horizon: Today only.

EURJPY charts


EURJPY 4 hourly - pullback to gains

EURJPY Weekly - 4.5 year lows

EURJPY Monthly - bearish sentiment
 Source: CQG

— Edited by Susan McDonald

Non-independent investment research disclaimer applies. Read more


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