Signals still bearish after EURJPY hits three-year lows
Bearish signals on the week and in each of the last two days have been confirmed, investors selling the market on Thursday for initial losses of over 1 ½ Big Figs.
A new three-year low has been posted at ¥120.32, attracting buyers back to the market for sentiment to recover by almost 1 Big Fig from the base. Despite this signals continue to point to staying short and selling rallies for further tests to the lows.
Management and risk description
Sell modestly at market and then on the rally. Lower stop to entry if the first target is met.
Entry: market and ¥121.20, today's open in Asia.
Stop: ¥121.56, Thursday's Marabuzo line.
Target: ¥119.75 and ¥119.11, the April 2013 base.
Time horizon: Today only.
For more on forex, click here.
— Edited by Robert Ryan
Non-independent investment research disclaimer applies. Read more