Short term
Trade view / 08 September 2016 at 10:23 GMT

EURJPY set to continue lower

Technical Analyst / FuturesTechs
United Kingdom
Instrument: EURJPY
Price target:
Market price:

Either side of the weekend EURJPY posted a bearish-engulfing pattern, a major reversal pattern in Japanese Candlestick Analysis. We have seen steady confirmation of this pattern with weakness seen subsequently. This has paused today and looking at my charts we have a level above that could be worth using as a reference for a short trade ( a low volume node on the profile).

Looking at the "bigger picture", there is no doubt we are in a downtrend so a short trade fits in with the longer-term skew for this pair.

Management and risk description

It's a pretty tight stop anyway, but once the first target is hit the stop can be moved to entry.


Entry: sell around 114.60-65.

Stop: above 115.30.

Targets: 113.50, 112.50, maybe even 111.00.

Time horizon:  1-2 weeks for the first two targets. might need a little longer for the third!

Daily Candlestick ChartEURJPY Daily

Weekly Bar chart

 — Edited by Martin O'Rourke

More from Clive Lambert

Non-independent investment research disclaimer applies. Read more
bancodemon bancodemon
Opened short trade yesterday but now reading this, and looking at charts now, obvious I went in too early..
Clive Lambert - FuturesTechs Clive Lambert - FuturesTechs
Just make sure you have your stop in as Draghi is talking soon.
Rofhiwa Thomoli Rofhiwa Thomoli
It seems like things changed on this analysis.
Clive Lambert - FuturesTechs Clive Lambert - FuturesTechs
I also feel 115.05-25 is a strong area of resistance, hence the stop is placed above here, so you can stick with it through the Draghi presser if you wish, but as I said make sure you have a stop in.
bancodemon bancodemon
I'm sticking to it...I feel there is going to be a massive u-turn...somewhere around 115.5
edo edo
I sold at 114.70, but I am holding onto it til 115.70, what do you think?
Clive Lambert - FuturesTechs Clive Lambert - FuturesTechs
I've been stopped out. Edo, are you saying you've got a stop at 115.70? You might be alright!!
edo edo
Yes I do, Clive. The up movement lost a bit of momentum, fingers crossed!


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