*Signal Update: As of 02/06/2015 9:45 EST: The Global Currency Scalper has cancelled its open order on EUR/JPY heading into this weekend. We will reevaluate Sunday evening on whether to send this order again.
As of 02/05/2015 @ 9:26 EST:
We have identified EUR/JPY as a possible long trade. As you can see from the daily chart above this pair has sold-off over the past two months and has recently staged somewhat of a rebound, although that rebound has been held by the 23.6% Fibonacci level. We feel this level is going to give way soon as buyers step back into the EUR/JPY. After Tuesday run-up to that level and Wednesdays rejection buyers quickly stepped in and brought this pair more than half way back again. This is evidence the sellers are not too strong anymore, only news (tomorrow's NFP) could cause buyers to take a step back once more. Other evidence points to the weekly chart below. You will see a very different picture as the EUR/JPY has enjoyed a stellar run-up from the lows in July of 2012. With its recent pullback noted above you will see the pair has held the 38.2% Fibonacci level showing signs of buyers stepping up to the plate.
With the above analysis the Global Currency Scalper will be going long EUR/JPY with a break of 135.550 and set forecasts of the figure 136.000 then 136.600 and further still too 137.000 and 137.600 which is the 38.2% Fibonacci level. We will set our stop with a break of 132.150, if this pair trades through this level prior to initiating a position we will turn neutral and further evaluation will be needed.
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