Global FX Trade Idea

Just Me | 4:37 PM | 0 comments


Long EUR/JPY@103.80. Stop at 103.00. Take profit 105.30

US stocks showed a key reversal pattern last Friday ( Positive Hammer) on the back of falling concern of a fiscal cliff thanks to a comment (BOEHNER SAYS MEETING WITH PRESIDENT WAS CONSTRUCTIVE, OUTLINED A FRAMEWORK FOR TAXES, SPENDING). Risk-sentiment looks to be improving ( our gram+ is now at risk-neutral out of risk-averse today). I am likely to make use of this timing as a chance to go long X.JPY as RISK ON trade & I prefer long EUR/JPY from here as it looks to be lagging other X/JPY. AUD/USD/CAD outperforming by one.5% vs EUR outperforming by 0.3% against JPY this month. They have the Eurogroup meeting to speak about bailout money to Greece later today, so I place my cease at a bit far away than usual in preparation for headline risks around the meeting. In addition, USD/JPY market isn�t longer than yesterday as the market had expected some dips to 80�s through the BoJ meeting & trimmed some longs, so I think the topside is lighter than before. EUR/JPY is breaking one.5 y downtrend, the next level will be 105.30 ( 38.2% fibo).

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