Buying the EUR/JPY (30/07/2013)

EUR/JPY (Daily)

There’s a really good setup for buying the EUR/JPY pair on the daily chart.

The yellow channel shows that there’s an up-ward trend going on, and the price is currently at the bottom.

We believe that the price will bounce for the following reasons:

  • there’s a hidden divergence (red lines), aka the up-ward trend will continue,
  • the price is currently at the 61,8% Fibonacci level, and
  • the stochastic is about to cross.

Our advice is to wait until the stochastic has been crossed, and there’s two consecutive bullish candles.

This is a 300 pips move that we are talking about so, there’s no need to rush, and since it’s on a daily chart, give the price some space to ‘breath’.

A recommended Stop Loss can be at the price 128,55.

ALWAYS PLACE A STOP LOSS TO PROTECT FROM REVERSALS. 

Read about the Trend/Wave/Extreme system here

The following is an analysis of the currency markets using the Trend/Wave/Extreme system . You can read about the system here. Please read our Risk Disclosure and Terms of Use  prior to making a trade using this information.