Today I am shorting EURJPY, even though the EUR is pretty strong in today's EURO/UK trading session and even in the US session, I expect/believe (based on my analysis) that EURJPY is at a key resistance level , of course I am no guru and my analysis is many times wrong, not because it's not solid, my method is excellent, but nothing can be 100%.
Here is the 4-hour chart of EURJPY
Right now I have two technical reasons to short the pair,
1. Price action is testing the recently broken, short-term, trend line
2. Price action is at the 30% level from the recent high to the recent low
Looking at the EUR I see plenty of reasons for uncertinaty as I believe the Catalonian's will not let go lightly and I expect riots to slowly begin in the Barcelona region and around, the people of Catelonia want an independace from Spain and the Spanish goverment used plenty of force which in return injured many people, these people have all circles of family and friends around them which are rigth now "pissed off" with the police and the Spanish goverment, since their family, friends, loved ones got hurt for trying to vote. This "cause" can turn into an "effect" and that effect is possibly, riots.
We have on going terror attacks in Europe which have recently not affected the markets (going back to 2016 the terrorist attacks caused issues to the EUR) so I am not expecting terror attacks to hurt the EUR unless its something BIG.
In terms of the JPY, again fundamentally, the tensions in the Korean peninsula are giving a boost to the YEN and I fully expect the tensions to continue so I expect a rapid rise in the YEN coming soon.
So there you have it, a little bit of fundamentals and a little bit of technicals. My SL is tight and my TP is targeting only the 1st of 4 take profit levels. The take profit levels are listed below.
Let me know if you will be trading this pair, if not, keep an eye on it, as long as it stays below the 133.50 the chances of it going to T1 or T2 are BIG!
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