As we all know markets move in waves. The simplest pattern we observe in the markets is the impulse and retracement pattern. With this in mind, we saw a very large impulsive move of the EURJPY to the downside and now we are expecting a retracement. Fortunately, we are now at a strong level of structure and we see large speculators are taking the EUR long (based on the most recent set of COT reports). With this in mind, and the fact that the JPY is still weak, we can expect the EURJPY to begin the push to the upside. Our first set of targets is the 0.382 retracement. The second set of targets is the 0.618 retracement but we expect to see this much later in the month and potentially only after the retest of the low.
Use the weekend to prepare for a profitable week and secure the bag!
Use the weekend to prepare for a profitable week and secure the bag!