EURJPY upside to find more traction above 145.01
Trade Idea background
EURJPY has formed a short-term double top pattern, created by both the Sunday opening ranges and this morning’s European highs. We expect that if the spot manages to break through the 145.01 level in intraday trading, additional upside could be expected and pave the way open for gains towards last Friday's highs. We will establish a long positioning in EURJPY only at the break of the aforementioned level.
Trade management and risk description
While the US trading session will see the publication of the November Pending Home Sales Index, the overall risk calendar remains rather slim today. The thin holday liquidity situation, however, gives rise to potential spikes in currencies. As such, we will keep our overall risk exposure in check here by making this trade set-up only a half nominal trading size and will protect it with a tight stop-loss order.
Trade Idea parameters
Entry: buy half-size order EURJPY stop bid at 145.01.
Stop: if done on the entry order, stop loss at 144.88, stop if offered.
Target: first target for this trade set-up is at 145.16, where we will lock in half gains and move the stop to entry. Second target is at 145.39.
Time horizon: intraday
Short-term EURJPY chart
Source: Saxo Bank
Long-term EURJPY chart
Source: Saxo Bank
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