On January 12, the Bureau of Statistics will publish the Consumer Price Index (CPI) figures, a key index for determining interest rates. While we await the release, experts forecast a decline in the CPI data, a hint at weaker Dollar values in the global markets.
What to trade? Consider EUR/JPY
2020-01-14 • Updated
EUR/JPY is enjoying the medium-term uptrend since the start of September. The pair’s currently trading above the 50-week MA (121.66) and above December highs (122.50). The latter hadn’t let the pair to get higher for four weeks, so a break above will mean that buyers have become stronger. The next targets on the upside are at 123.35 (June high) and 124.15 (38.2% Fibonacci retracement of the 2018-2019 decline). Although the long-term is negative and there will be significant resistance at the mentioned levels, a weaker yen may lead the pair to the mentioned targets. The medium-term outlook will remain positive as long as EUR/JPY is trading above 121.00.
At the same time, we still haven’t seen a daily fix above 122.50. A decline below today’s low at 122.30 will mean that the move to the upside was false and open the way for a decline to 121.50.
BUY 122.65; TP1 123.35; TP2 124.15; SL 122.45
SELL 122.25; TP 121.60; SL 122.40
The trend in the scenario above is clearly bearish. We have also had a recent break of structure at the marked horizontal arrows, which means we can expect price to react from the supply zone that broke the structure.
Hello, my beautiful readers. This week, we continue our critically detailed look at the markets in hopes of getting profitable trading opportunities. As usual, I'll be starting with the DXY (US Dollar Index) since it holds considerable sway over the Major currency pairs.
This week, there are a few high-probability trade ideas I'd like to recommend to you. Trading these setups, be sure to implement a proper risk management approach.
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