Today we have an interesting opportunity for EURJPY. I was expecting the pair to climb a bit higher yesterday and make a false move above the triangle forming on the 1 hour chart. The pair did break higher, and now consolidating in a range. It can still go a bit higher from here. I think the pair can move down in the coming sessions and break the triangle. So, we should be looking for sell opportunities.
Looking at the 1 hour chart of EURJPY, the pair is forming a triangle as shown below. There is a support at around the 142.50 level, where the triangle support also coincides. So, once the pair moves lower, breaks the support and the triangle and closes below it, then we will enter into a sell trade. Remember, if the pair moves higher and does not trade lower, then we will stay away and re-analyze the things later.
Initial target should be around the 140.50 level as shown below, and final target could be around the 139.50 level. Stop should be placed above the last high.
Reviewing yesterday’s events and trades
Yesterday, there were some important data released for the Euro zone and Canada. The data was mixed, as the German employment data came better than expected with unemployment rate stable at 6.9%, and the Euro zone CPI data missed the expectations with a decline from 0.9% to 0.8%. The EURUSD climbed earlier, and then retraced the gains. The Canadian Ivey PMI was also released, which registered a heavy decline from 53.7 to 46.3. The USDCAD was seen trading higher after the data release.
Fundamental Outlook for the day
Today is an important day as we have the US ADP Nonfarm employment change and the FOMC meeting minutes scheduled to be released. I expect some movements in the US dollar after the release. In the next Asian session, Australia’s retail sales data and Chinese inflation data will be released. These two events can bring in a lot of volatility for the Asian currency pairs, especially for the AUDUSD and NZDUSD. So, plan and trade accordingly.
This analysis is taken from today’s Daily Market Forecast, which also includes trade opportunities on: EURUSD, GBPUSD, EURAUD, EURCHF, AUDUSD and USDCAD.
Get it HERE: Vladimir’s Markets Forecast
Trade safe friends. Happy trading!
