A.P.Weber: trading EUR/JPY
Authored by Alex P. Weber
Time has come to analyze my favorite FX cross – EUR/JPY.
The pair has been cramped in a clear downward channel since May. Bearish widening daily Ichimoku is a good confirmation of the medium term descending tendency. The 100-day moving average crossed the 200-day moving average upside down at the beginning of August – another signal for growling bears to attack.
Wait. I know my words sound persuasive enough, but you shouldn’t go short right now. Take a look at the MACD divergence on the daily timeframe. Short bullish bounce is on the way, I guess. However, the 138.00 mark will clearly defend the dignity of the sellers.
So I see the one and only adequate trading strategy for EUR/JPY these days – SELL ON HIGHS from 137.70, target 135.70 and place a stop order at 138.40.
Chart. Daily EUR/JPY