Guest Commentary: MarketVisionTV - Why will we see more EURJPY on a Rally?
We are looking to add to Euro Yen shorts because:
* It has completed a trend sequence from the 97 low
* It forms part of a Spiral Analogy that projects new lows
* Even under a bullish scenario it has high probability and an excellent risk/return.
Euro Yen has maintained the uptrend from the 97 low to challenge the previous 111.55 high. Indeed having spiked the 5=1 target of 110.60 and satisfied a very well subdivided 5 wave trend sequence it is now vulnerable. The question is what are we selling for.....
Given the spiral analogy and the possible outstanding retest of the 88.80 low it is possible that this 5 wave rally ends a correction within a declining wedge and so begs a final new low.
But even assuming Euro Yen has reversed in the medium term... given the 5 wave from a new low then we should see Euro Yen fade 111.55 for a loss of 110 now to encourage a reversal through 108.70 to an initial 105.40-70 the 38.22% and previous corrective low and en route to the 61.8% retracement to the 102.20 interim high. Above 112.20 trend resistance from 139.20 opens 113.65-114.40 the 1.618 fibo and the threat of upward acceleration towards 123.30.
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