EUR crosses/FXWW News/JPY crosses/Technical Analysis/Trade Ideas

EUR/JPY: If the EUR is to break lower, this could be the driver

I’ve just had a long look at the EUR crosses, trying to find some reasons to be bearish, and the one pair that really sticks out on many fronts is EUR/JPY. The main argument at the moment is that the big macro funds are quite long of this pair still, having bought it aggressively from 105 up through 120 and they have had little reason to become overly worried about their positions. I’m not sure what might drive them out, but the technical picture is showing a nice topping pattern on the dailies (see chart). Of course for EUR/JPY to fall aggressively, we would probably need to see a big risk-off event, and that doesn’t tie in well with my bullish AUD prognosis. Opinions change I guess, best to leave it to the market to figure it out.

I’ve taken a small EUR/JPY short at 128.70, let’s see how it develops.

  1. Hi Sean, I’m not sure you are consider this as H&S or not, I been short at yesterday but the trade been close 129.10, but would you consider this is the good lvl to short?? and what I m noticed that are GBPJPY longterm trendline been broken?? Any view for that?? thanks

  2. Perfect horizontal H&S Jack. Momentum v strong as its already 50 pips lower in last 30 mins! Wish I’d sold more 🙂 Keep position sizes manageable and then its ok to sell at these lvls

  3. ok, I’m in too, due to I’m believe the BOJ won’t for any action, and the market will disappointed, yup, keep typing, keep falling

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