EURJPY at Risk Sub 135- Short Scalps Favored
- EURJPY at risk for pullback- Possible H&S setup
- Short-scalps favored against today’s high
- Event Risk on TapThisWeek
Chart Created Using FXCM Marketscope 2.0
- EURJPY setting monthly opening range below key resistance
- At risk for correction lower after tagging TL confluence last week
- Key support with the march median-line / 132.20/63 backed by 131& 129.87
- Breach above 135.79 needed to shift focus back to the long-side (bearish invalidation)
- Topside resistance objectives at the upper MLP, 137.16 & 137.93
- Daily RSI support trigger pending
- Event Risk Ahead: Japan Trade Balance tonight & Eurozone GDP tomorrow
Notes:EURJPY looks to be holding within the confines of a median-line formation off the initial May highs with last night’s rally reversing off the upper MLP / Fibonacci resistance into 135.12. Proximity to resistance & a subsequent turnaround in momentum has us holding shorts here with ¼ of the trade closed out at the initial 37pip ATR profit target. Interim support stands at 134.18/20 backed by the TL support / 133.74 & the weekly low.
Bottom line: looking lower against today’s high’s (near-term bearish invalidation) with a break below the weekly lows targeting the 132.80 region / the operative ML. Caution is warranted heading into event risk this week with Japanese Trade Balance Figures tonight and Eurozone GDP data tomorrow likely to fuel added volatility in EUR & JPY crosses. A breach above 135.28 invalidates our scalp bias with a push through 135.80 shifting the focus back to the long-side of the pair.
* It’s extremely important to give added consideration regarding the timing of intra-day scalps with the opening ranges on a session & hourly basis offering further clarity on intra-day biases.
Relevant Data Releases
Other Setups in Play:
- Scalp Webinar: EURUSD Eyes Support- May Opening Range Setups in Focus
- Scalp Webinar: USD Rebound at Risk- AUD Bulls to Face RBA
- USDCAD Breakdown Stalls at Key Support- May Opening Range in Focus
- AUDJPY Breakout Scalps Target 200 DMA Ahead of BoJ, China PMI
---Written by Michael Boutros, Currency Strategist with DailyFX
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