Forex Trading: Playing EUR/JPY and GBP/JPY Ranges
I am trading the Yen crosses actively (intraday basis) and all updates are given through Twitter @JamieSaettele. I don’t know where the market is headed on a day to day basis (and if anyone says they do then they are lying) but volatility does allow short term players to take advantage of support, resistance and intraday setups.
The EURJPY has retraced half of its rally from the January low and has responded intraday at steep trendline support. The 20 day average and 1/16 low are potential support near 11650 in the event that weakness extends. 11887-11930 is resistance in the event of strength from ABOVE this morning’s low (11704).
The GBPJPY is below its 20 day average (a form of divergence since the EURJPY is above its 20 day average) and at a low for 2013, having dropped to its former 4th wave (1/9 low) at 13737. A larger drop is probably in the works but this is a good place for a ‘surprise’ pop. 14200/50 is estimated resistance if strength resumes from ABOVE 13925. Weakness below there would shift focus to 13730/85 (161.8% extension of decline from the high and 12/19 high).
--- Written by Jamie Saettele, CMT, Senior Technical Strategist for DailyFX.com
To contact Jamie e-mail email@example.com. Follow me on Twitter for real time updates @JamieSaettele
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Jamie is the author of Sentiment in the Forex Market.
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.