EUR crosses/EUR/USD/Technical Analysis

EUR/JPY dispatches another technical resistance level

This very strong trend continues to power ahead and weekly trendline resistance near 106.20 has just been breached. Those EUR/USD stops I mentioned earlier above 1.2885 might soon start coming into view if the EUR/JPY buying continues?

  1. It feels like the market was so desperate about something to happen and is going full in on this JPY trade, like a herd of sheep running to the slaughterhouse, the ones behind fearing they would miss something and pushing stronger.

  2. I am not sure if it makes sense, but I have decided to try shorting EUR/JPY around 106.2. The reason: I do like recent action on hourly scale for both EUR/USD and JPY/USD and will try to play it through those legs. I have not decided on goal and SL, will see how it develops over next 12 hours. Most probably 100-150 pips of counter trend move would be enough for me and I am not going tolerate more than 70 pips of losses.

  3. Papillon.
    Idea was originally driven by my desire to short EUR/USD on approach towards 1.29 from couple days back. (Retests of line with lows from early Oct from below). And I agree with you that we could see just consolidation in EUR/USD with possible higher end target around 1.30. JPY leg was thrown there because of divergences on hourly scale from last two days. This is 24-48 hours low conviction trade that just feels right on my side.

  4. Ok, thanks for this reply. I am tempted to short EUR/USD at this current level but the others pairs like EUR/GBP, EUR/AUD, EUR/JPY have broken resistance. I prefer the “wait and see” mode that top picking at 1.2900 for EUR/USD.

      1. > @Papillon
        Thank you for the info. I am not comfortable with JPY/USD. local technicals are ok, but the move was too big recently. I have decided to get out of JPY/USD with small profit. Will keep reduced short on EUR/USD.

        1. > Hello Kirill, i haven’t done anything on this cross. By the way, i monitor it closely to understand the market, for my next trade 😉

          1. > makes total sense. I am foreign to EUR/JPY as well, bit the trade looked attractive earlier.Thank you for comment. It saved me some. I am a bit surprised by the strength of recent risk on move. I am not in the mood to chase anything here and not ready to put any countertrend trades either. I will wait several more days before dust settles.

    1. > @Papillon: yes volume could be low, but price is a price. I was wrong in my estimate of upside. Now need to step back, wait for couple days and reevaluate.

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