EURJPY rally signalled as corrective
Our signals have been bearish on the week and Wednesday's bounce has attracted sellers at the 13 and 50-day average rates. Another bounce yesterday is also signalled to be temporary and we are looking to take advantage of this, or if not and the market falters we will also sell through support.
Management and risk description
We are staying square on the open, but looking to sell into strength or down through support. If either trade is executed the stop can be lowered to entry once the first target is met.
Entry: sell at 113.90, a 78% recovery to the losses since Wednesday's high or sell at 112.60, Thursday's Marabuzo line.
Stop: the stop on the sell rally is at 114.41, Wednesday's high and the sell through support at 113.10.
Target: 112.08, this week's low and 111.25.
Time horizon: today only.
— Edited by Gayle Bryant