Talking Points
- EURJPY opens in a 68 Pip Range
- Range Resistance Sits at 136.26
- Range Reversals Triggered Under 135.25
EURJPY 30min Chart
(Created using FXCM’s Marketscope 2.0 charts)
New to FX Reversals? Suggested Reading: Trading Intraday Market Reversals
The EURJPY has opened trading this week with price moving inside of an established 68 pip range. As of today’s U.S. open price has traded through the range once, testing both key values of support and resistance. Today’s range support at the S3 Camarilla Pivot is depicted above, and can be found at a price of 135.58. R3 resistance can also be seen at a price of 136.26. Knowing this, reversal traders can continue to initiate new positions in the range as long as these values remain valid.
A change in market conditions, could lead to the conclusion of the current range and raise the potential of a market breakout. If the EURJPY trades below the S4 Camarilla Pivot at 135.25, this would signal a shift towards Yen strength and a continuation of the pair’s daily trend. Conversely, a rise in price above the R4 pivot at 136.60 would create a bullish reversal scenario, with prices trading towards higher highs. If price does breakout, current range bound market conditions would be considered concluded and traders could then begin positioning with the markets new directional bias.
Yesterdays Update
Friday’s reversal article focused on the USDJPY which was also opening the morning near its R3 resistance pivot. After the conclusion of trading, the pair had traversed its range four times! To get a recap of Friday’s action, check out the FX Reversal article linked below
FX Reversals: USDJPY Reversal Range
Then, to practice setting up orders using Camarilla Pivots, register for a FREE Forex demo with FXCM. This way you can develop your day trading techniques while tracking the market in real time.
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---Written by Walker England, Trading Instructor
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