More Yen Strength Expected Against Sterling
GJ has retraced 50% fib level of the current thrust downward. This is an anticipation of more JPY strength and selling opportunity to the downside to the ultimate low 127.00 area before we see any significant retrace to the upside. This will then create a double bottom and some buying opportunity may come into play after that level has been reached. Our strategy is to sell the rallies on this pair using 15 minute charts.
The AUD/JPY has just had a reversal trendline break and with the confluence of events of yen strength, this pair should reverse nicely. This is a potential downtrend continuation reading strictly price action with leg 1 already making its distance and bearish run. Currently on the weekly chart we are sideways awaiting for this break to have the leg 2 breakout level making this downtrend continuation pattern the first one on the weekly chart this cycle due to the reversal and trendline break as noted. Strategy, sell rallies on 15 minute chart.
EUR/JPY from a weekly perspective in stacked for shorting opportunity. A downtrend continuation pattern is in the works of maturing. Upon price action of 110.00 break, leg 2 will create momentum and the low of 95.00 target reached with the yen strength. The strategy we are using Is to sell rallies intraday and on the hourly chart, per break of 110.00 level, position trade down to 95.00 for a healthy profit.
Erica Villalon, Traders International
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