TV

John J Hardy
The British pound has continued to strengthen this Tuesday as investors contemplate an interest rate hike sooner rather than later. GBPUSD is trading near cycle highs.
Trade view / 30 December 2013 at 9:59 GMT

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

eurjpy short term

Source: Saxo Bank

Long-term EURJPY chart

EURJPY Long Term

Source: Saxo Bank

Disclaimer:
Non-independent investment research
This investment research has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Further it is not subject to any prohibition on dealing ahead of the dissemination of investment research. Saxo Bank, its affiliates or staff, may perform services for, solicit business from, hold long or short positions in, or otherwise be interested in the investments (including derivatives), of any issuer mentioned herein. » Read more

30 December
Sarbu Claudiu Sarbu Claudiu
Filled!
Good luck Antero!
30 December
Antero Atilla Antero Atilla
Thank you Sarbu. Market liquidity increasingly vanishing though, which is making it difficult to see through the breaks properly. Let's see how EURJPY will perform above the figure.
30 December
Antero Atilla Antero Atilla
With the liquidity remaining thin and the pair not seeing a clear follow through above the figure yet, we choose to halve the position here at 145.05 ahead of US data publication. All other trade parameters remain intact.
30 December
Antero Atilla Antero Atilla
With momentum now fading and liquidity conditions remaining thin, we choose to take the remainder of this trade off here around 144.99 for an overall flat trade.
30 December
Antero Atilla Antero Atilla
For those who might still be in this trade, first target level has been reached and it could be a good level now to adjust the stop on the remainder to entry level.
30 December
Fxjo Fxjo
Weldone Antero Atilla

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