The Euro had shown weakness relative to most major currencies last week, and has been retracing so far this week, due either to profit taking, or to very strong eurozone PMI data, The data was very healthy with manufacturing activity in Germany expanding at its strongest pace since the first quarter of 2014. The services index rose from 50.9 to 55.1 — the largest increase in 3 years. Now that euro pairs, including the eurjpy have risen slightly, they are looking more attractive for a sell once again. I have provided a top down ( from daily to h4 ) analysis below.

Daily chart

price has come off the top of the range, Mr1, as indicated by the arrow, with a target of MS1, as indicated by the x. the 21 ma is below the 55 ma, and there is some nice angle and seperation developing between them, shown by the tick, indicating some good downisde momentum.

H4 chart

as inidicated by the arrows, we are making consistent lower lows, and lower highs, indicating a downward trend, there is nice angle and seperation between both the 21 and 55 ma, and we have nearly reached an oversold h4 stochastic. I will look to enter at the wm3 area, which is also a 61.8 fib retracement.

2 thoughts on “Eur/jpy weekly short”

  1. Dumisani Vilakazi says:

    Dom I love the analysis can we maybe consider entering at WR1 considering pivot theory and the 200 MA?

    1. Jim Reddihough says:

      113.95 to 114.22 looks a very interesting area for shorts if we get a bit of JPY strength later today. In addition to above we have Day21, Daily R2 and monthly central.

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