Trade view /
24 May 2016 at 7:23 GMT
EURJPY – The long-term bias is still focused on the downside with this month’s rally rejected close to April's Marabuzo at 124.90. An AB=CD formation is seen at 117.35. Fibonacci confluence area is at 115.36-114.08.
Monthly - Fibonacci confluence area
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The daily chart highlights mixed results for the last eight trading days. This has resulted in a channel formation on the intraday chart. The base of this formation is at 122.00 making risk/reward poor to call a sell from current levels. Our bespoke system still highlights a bear trend with selling into rallies the call today.
Daily - Mixed Results
Our resistance levels are 123.15 and 123.25. With 123.18 being the top of yesterday morning’s Value Area (Market Profile), we choose this level to get short.
It should also be noted that with USDJPY reaching an intraday 261.8% extension and bespoke support at 109.13, we are also selling into rallies in this pair today (ample scope for a move to 109.85).
Two Hour - Bearish Channel
Management and risk description
Selling at 123.15
— Edited by Clare MacCarthy
Non-independent investment research disclaimer applies. Read more