Euro / Japanese YenShort
Watching for downside
Updated
We've only closed bearish 1 day in the last ten on EURJPY, it really has been a stand out performer recently. I was interested short a week ago before it broke out of the Daily channel, and since it has been nothing but a long.
There is an interesting pattern that could present a possible short, but I'm being extremely patient and want to see as much confirmation as possible. Fading this market hasn't been profitable for two weeks, so there will be plenty of chances to get in.
There is an interesting pattern that could present a possible short, but I'm being extremely patient and want to see as much confirmation as possible. Fading this market hasn't been profitable for two weeks, so there will be plenty of chances to get in.
Note
Not exactly what I had in mind but we're starting to get some serious downside. I was looking for a short yesterday but ended up taking EURCAD long. The price action this morning has been very aggressive off the London open so I've not been able to capitalise on this move yet. Waiting to see if we get a lower high (similar to what we're seeing on EURUSD currently) but I'm not sure we'll get something that fits my playbook.
Two lessons to take away though:
1) Obviously buying a Put with an end of week strike would have worked nicely. Buying on the 15th would have been a little premature but once price broke 163.800 on the 16th, price action had started to confirm our thesis, giving us a better entry AND confirming that patience is key!
2) I used the extended Daily chart here to be confident that EURCAD was actually STRONG on the daily and not EXTEDNED. This helped me take it long, going with the trend and not fighting it.
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