FXWW News/JPY crosses/Trade Ideas

EUR/JPY: Looking to enter short position near 133.80

This pair has come a long way over the past 12 months and I feel we are soon going to see a sharp retracement lower towards 120.00 perhaps. Most of this move is likely to come from an overly long USD/JPY market in my opinion, but I prefer the technical set-up in EUR/JPY.

Corporate sell orders will be very solid towards 100.00 in USD/JPY and I expect technical resistance in the cross to be very strong between 134/135. Sentiment, especially amongst retail players, seems to be quite bullish so I think we will probably see another 75/100 pips at least on topside before the momentum wanes.

I will start selling near 133.80 and will look to build on this position ahead of 135.00. Obviously I need to keep my initial stop above 135.50 so I’m starting out with a smaller position.

  1. Morning Sean , the daily uptrend looks very much intact and a short now it’s kind of speculative IMHO. Agree that momentum is waning but it has been like this for some time now and a major weekly resistance is at 138.30, since this has been a long term trend. Perhaps is better to look for selling opportunities after a breakdown of support at 131.20 ? As for the target , I agree that a pullback will target levels below 120. BTW how are things in London ? Any interesting news to share from the conference ?

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