Guest Commentary: Trading the Next 500-pips in EURJPY
* EURJPY has broken higher from consolidation in the final sustained spike.
* The sudden interest in EURJPY suggests 'easy' money is now on board encouraging view this cannot be sustained.
* Since this is close to the end of a possible medium term correction, we are now switching from long to short.
EURJPY has duly broken higher from 97.90-99.20 consolidation in what should prove to be an exhaustive spike. Just as EURJPY longs become the centre of attention on the break of 100 it is time to exit longs and sell.
What we first thought was a corrective triangle in the 9790-9920 range in retrospect is an increasingly common or deceptive flat or 3 legged triangle but shouldn't alter the outcome. As such the thrust should not be sustained and although we have looked for 100.70 the 38.2% the confluence of 100.45-50 suggests we should this to exit longs and start selling.
Indeed notice the similarity to USDCAD as although there is a chance to see 101.70 eventually, we suspect at least a break back below 99.00-20 in the short term to signal 9790 again and possibly uptrend support now at 97.30.
Since we are looking to reposition medium term short again, we will use any break of 101.00 to add to shorts at 101.70 with 102.20 stops.
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