Medium term
/
Sell
Trade view / 09 January 2018 at 8:37 GMT

Evening star spells end to EURJPY rally

Technical Analyst / FuturesTechs
United Kingdom
Instrument: EURJPY
Price target: 131.20
Market price: 134.70
Background 

EURJPY ended 2017 on a high note, taking out resistance at 134.40 that had prevailed for most of the year. This should have signalled a strong move higher. Alas this has already run into trouble, and Thursday's, Friday's and yesterday's candles combine to put a powerfiul evening star reversal pattern on our chart. This suggests the pair will move back through 134.40 and head to 133.00, then 131.20, maybe even 128.32.

Management and risk description

Because our last target is 600-plus ticks away, we are going to run a bigger stop than usual to start with. The main potential banana skin for this trade is if 134.40 decides to do a job as support on the retest, so we'll be closely watching the price action if/when it gets there.

Parameters

Entry: sell a rally to 135.10 and/or a break through 134.70.

Stop: 100 ticks initially.

Targets: 133.00, 131.20, maybe even 128.32, the latter being the 38.2% retracement of last year's rally.

Time horizon: medium-term.


EURJPY daily candlestick, showing big evening star reversal pattern:
EURJPY Daily
Source: CQG
 
EURJPY weekly bar chart:
EURJPY Weekly
Source: CQG
 
— Edited by John Acher

Non-independent investment research disclaimer applies. Read more
A compiled overview of Trade Views provided on TradingFloor.com is found here

2y
FadelSalem FadelSalem
Perfect Sir >> Really Good call
2y
FadelSalem FadelSalem
what is your expectation for today's target?
2y
Clive Lambert - FuturesTechs Clive Lambert - FuturesTechs
It depends if we break or hold 134.40. We should find out soon enough!
2y
FadelSalem FadelSalem
Oh, yeah. So if break what is next?
2y
Michael S. McKenna Michael S. McKenna
There's the first break.
2y
Clive Lambert - FuturesTechs Clive Lambert - FuturesTechs
2X ATR says 133.85 is possible.
2y
Michael S. McKenna Michael S. McKenna
serious support around 134.35
2y
FadelSalem FadelSalem
Bounced again :(
2y
FadelSalem FadelSalem
Something about Gold Sir?
I see it rebounded too :)
2y
antonitoespanol antonitoespanol
Congratulations Clive, today the trade of the day is your
2y
Clive Lambert - FuturesTechs Clive Lambert - FuturesTechs
Gold is "buy dips" while 1308 and 1300 are below us, targeting 1347 and 1362.

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