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In last week’s Eur/Jpy analysis I recommended shorting 115.20 up to 116. Eur/Jpy hit a high of 115.80 and then closed the week at 114.10, so last week’s recommendation would have ended you with at least +100 pips or more in profit.
I still think that Eur/Jpy will head much lower, probably next week. I expect a target of 110.50 to be reached, but let’s look at some charts:
From the weekly chart above I see the following:
- Strong weekly reversal candle for the downside.
- Under a descending trendline.
- Under the 21MAE and 50MAE which acted as resistance for last week’s rally.
- Stochastics and RSI under 50 on a weekly basis, which is bearish.
From the daily chart above I see the following:
- Under the descending trendline.
- under the 21MAE,50MAE and the 100MAE.
- Daily stochastics and RSI both under 50 but not oversold yet, this is bearish.
Eur/Jpy Analysis Conclusion
I think there has been enough consolidation and moving about for the downtrend to resume.
I expect Eur/Jpy to reach 110.50 in the next 2 weeks, but possibly even in the week ahead.
This analysis will be deemed invalid should Eur/Jpy break above 116.
If you are still short from last week’s analysis 115.20 up to 115.80 I’d suggest moving your stop to breakeven to eliminate all risk from the trade and then letting it ride. 110.50 would be an almost +500 pip profit which is very sweet (and has zero risk). Let’s hope it gets there.
P.S. Once again, I’m planning to open a real forex account to make public to all of you very soon. If you want to contribute, a donation via Paypal (to be added to the forex account) would be awesome.
