Talking Points
EUR/JPY breaks below monthly open- short scalps target key support
Updated targets & invalidation levels
Event Risk on Tap This Week
EURJPY Daily
Chart Created Using FXCM Marketscope 2.0
Technical Outlook
EURJPY breaks below monthly open / opening range- Bearish
Targeting 61.8% retracement at 131.80 & key support confluence 131.23
Shorts favored below today’s high at 133.54- bearish invalidation
Breach above monthly open at 133.97 needed to shift focus higher
Daily RSI support trigger break / break sub-40 – bearish
Key Event Risk Ahead: Japan Industrial Production tonight and Jobless Rate & CPI on Thursday followed by the BoJ
EURJPY 30min
Notes: EURJPY is trading within the confines of a well-defined descending pitchfork off the October 14th high with today’s FOMC sell-off rebounding off the median line into the close of U.S. trade. The focus remains weighted to the downside while within this formation / 133.54 with a near-term support confluence seen just lower at 131.80. Key support rests with the 100% extension of the decline off the June high at 131.23.
Bottom line: looking to sell rallies / short triggers while below today’s high with a breach above 133.89/97 needed to shift the focus back to the long-side of the pair. A quarter of the daily ATR yields profit targets of 25-28pips per scalp. Caution is warranted heading into the end of week / month with key data out of Japan & the BoJ monetary policy decision likely to fuel added volatility in yen crosses.
For updates on this scalp and more setups throughout the week subscribe to SB Trade Desk
Relevant Data Releases Next Week
Other Setups in Play:
GBPJPY Shorts Favored Ahead of Major Event Risk
USDCAD Risks Reversal Below 1.3150 on Canadian CPI
EURCAD Bulls Brace for ECB- Rally Vulnerable Sub 1.4955
NZDCAD Posts Outside Day Reversal Pre-BoC; Shorts Face 8700 Hurdle
Webinar: ECB/BoE Playbook- EUR/GBP Shorts Target Key Support Zone
—Written by Michael Boutros, Currency Strategist with DailyFX
Follow Michaelon Twitter @MBForex contact him at mboutros@dailyfx.com or Click Here to be added to his email distribution list
Join Michael for Live Scalping Webinars on Mondays on DailyFX and Tuesday, Wednesday & Thursday’s on SB Trade Deskat 12:30 GMT (8:30ET)
Struggling with your strategy? Here’s the number one mistake to avoid
Source: Daily fx