eurjpywkly

That 134.30 high from Monday morning looks like a total gift now but unfortunately I didn’t see it like that at the time. This pair is in a holding pattern and has been for the last 9 months. There is some relatively strong support looming around 127 so if you didn’t sell earlier in the week, I don’t think I’d be diving in here, or if so then for a quick 50/80 pip move. After falling 5 big figures in 2 days, resistance levels are also fairly thin and a relief rally looks eminently possible.

My prognosis here is that selling rallies is the correct strategy. Play the edges of a 127/135 range with a distinct bearish bias. Look for stronger support around 124.50 to hold a first attempt but a clean break below there and the cat will be firmly among the pigeons. Some big moves looming here in the coming months and I think they are going to be down.