Hello Traders,
In my opinion, the Yen will continue strengthening going forward. This won’t be the first time it as done so and surprised investors. Looking back in time since the Abe came to power and the consequent launching of Abenomics, the Yen weakened considerably. In fact when Abe came in, the Yen was trading at 98 against the Euro and it appreciated until late 2014 when there was a realization that negative interest rates and quantitative easing was not a solution to the chronic deflation. It then resorted to policy change with yield curve control its main tool of controlling and resuscitating inflation towards the world wide 2% target.
Looking at the charts and looking left, price action is bouncing around the previous support turned resistance. If you are wondering where, look back at 2015 lows where price action bounced off and broke below last year. As a matter of fact, price action is resisting this territory and forming a series of inverted hammers with bullish momentum waning as indicated by the stochastics. Since price is reversing from significant Fibonacci levels with a clear sell signal printed by stochastics, let’s be ambitious and target the next probable support at 110-113 zones for a clean 1000 pips dip and trade as follows:
Sell: 123.50
Stop Loss: 124
Take Profit: 113-this area is the 2016 lows and support zone.
Remember, the trick to staying profitable is to trade less, good money management and a sizable risk reward ratio. Place this one trade and wait or trade intraday time frames and look for shorts ONLY.
Have a good trading day.

eurjpy weekly chart-30.05.2017

Source: Dalmas Ngetich

Abenomics eurjpy weekly chart-30.05.2017

Source: Dalmas Ngetich

9 thoughts on “EURJPY DAILY ANALYSIS FOR 30.05.2017”

  1. Teboho Faro says:

    Great one man.

    1. Dalmas Ngetich - FOREX.TODAY says:

      Thanks man, always my pleasure. Let me know what you also think.

      1. Teboho Faro says:

        I think its a great call looking at the EUR forecast for their currency in the next four years
        Heres the link; https://tradingeconomics.com/euro-area/forecast

        1. Dalmas Ngetich - FOREX.TODAY says:

          Looking at this, this is the only 5th sell signal printed in the last 4 years or so. it’s always a good deal and you see, this is from experience as a I lost a good opportunity back in may 2015 with the GBPJPY pair-initially I was short and bagged in 200 pips from the weekend grexit deal but then resorted to taking my profits. Now looking at that trade, I wasn’t patient enough to bag the 7000 pips drop. That is not happening again. so, I trade weekly charts and relax even if it takes 2 years, it doesn’t matter all you have to do is too add your positions in weekly charts when your are winning. plus, corollary studies shows that in the long term, the lesser the trades taken, the more profitable the strategy is.

  2. Maryna says:

    Hey Dalmas! Seems to me you are giving all the traders a good challenge and risk/reward trade. 50p SL for 1000 pips looks like the trade of the year! I will take this challenge for sure!

    1. Dalmas Ngetich - FOREX.TODAY says:

      Haaa, good morning, sorry..ha ha indeed, it should be above that inverted hammer at 126.00 not at 124, was not keen enough. But hey, you should take this challenge a 1:5 risk reward ratio is a always a good deal

      1. Maryna says:

        I’m taking this challenge on an intraday basis using weak/strong analysis as usual. I just hope I don’t die before it gets to target – hie, hie!!

        1. Dalmas Ngetich - FOREX.TODAY says:

          Ha ha, I believe you have many birthday candles to blow…

  3. Mthobisi Mchunu says:

    Looks like a challenge worth taking… I never trade on weekly chart but i will give this a go!..
    THhanks Dalmas..

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