- Daily: In the previous post, the EUR/JPY was showing either a true breakout or clear-out depending on subsequent price action. (Refer to Daily Video Technical Update 1.27.2010 last pair).
- If today’s price action continues to be bearish, it is suggesting this is a true breakout, although there still may be a pullback as the momentum is in oversold mode.
- 4H: There might still be a pullback after the market hits the 122.00 area (61.8% retracement and 161.8% extended retracement levels).
- Either way, the risk assessment below uses 3ATR stop placement method and targets at 119 and 114. the conservative target yields a 1.33:1 while the aggressive target yields 2.44:1.
- This outlook is improved if there is a more significant correction rally establishing previous support at 126 zone as resistance.
Fan Yang
Currency Analyst
Commodity Trading Advisor
Information and opinions contained in this report are for educational purposes only and do not constitute an investment advice. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness. CMS will not accept liability for any loss of profit or damage which may arise directly, indirectly or consequently from use of or reliance on the trading set-ups or any accompanying chart analyses.
Foreign currency trading is not conducted on an exchange. CMS is acting as a counterparty to its clients’ transactions and as a result, CMS’ interests may be in conflict with its clients. Since CMS acts as the buyer or seller in the transaction one should carefully evaluate any trade recommendation provided by CMS or any of its solicitors. Foreign currency trading involves a substantial risk of loss and may not be suitable for all investors.
All screenshots are made from VT Trader 2.0 and are of actual market data at the time of the screenshot.
