Monday, February 16, 2015
New Signal EUR/JPY
*Signal Update as of 02/17/2015 @ 7:54 EST: The EUR/JPY has traded through our potential stop order, we have turned neutral on this pair and will seek further evaluation.
As of 02/16/2015 @ 21:20 EST:
We have identified a possible short trade in EUR/JPY. This pair has been in a downtrend since December of 2014 but has recently had a nice bounce which was basically capped by the 23.6% Fibonacci level. It made a run to the 38.2% Fibonacci level only to fail after a day or two. The EUR/JPY is showing signs of rolling over, it seems the 23.6% Fibonacci level is just too strong.
We will be shorting EUR/JPY with a break of 133.520, forecasts will be 132.650, then the figure of 132.000 and eventually 131.000 and possible the near-term low of 130.140. Our stop will be with a break of 135.600, if this pair trades through this level prior to initiating a position our view will turn neutral and further evaluation will be needed.