Japanese Yen FX Empire

EUR/JPY Triple Top For a Good Short Trade

EUR/JPY Technical Analysis

  • EUR/JPY Triple Top Formation
  • Selling the rallies
  • Bearish trend continues below point 1
  • 134.30-60 is the first target

MEGATREND MAs: Bearish

D1 Chart EUR/JPY

  1. Double bottom support
  2. Higher high
  3. Double top
  4. Intraweek target

EUR/JPY is bearish. Technicals show a clear downtrend with many attempts to break the blue line point 1 as the price is bouncing. However, today’s candle might break it lower and continuation below the point 1 should lead the price lower to intraday target -136.57 and eventually towards the intraweek target 134.31 or 132.41 depending on the ATR and momentum.

These are the reason when Yen is getting stronger:

Yen strength

1.100% risk off sentiment

2.Gold up

3.Commodities prices down

4.Equities down

5.Yen strengthens as a result

It happens because the Japs can get cheap credit, so they invest overseas heavily. When it’s risky, they bring the money back creating demand for Yen and vice versa, when its bullish Equities, they pump their money overseas, which means they sell Yen and buy foreign currency.

This analysis, and all entry signals and targets are a part of the Megatrend system and a trading course. I am maintaining the short trade on EUR/JPY with an entry at 137.32.

Cheers and safe trading,

Nenad

Published by

Nenad Kerkez

Nenad Kerkez is an analyst and trader who has been in the market since 2008 and works closely with Admiral Markets as their Senior Lecturer and Market Analyst. Nenad covers over 25 currencies on an intraday basis and has a Masters in economics. He also developed CAMMACD TM, a proprietary trading and analysis strategy wit ever powerful pre fact setups that you can read every day. Nenad is also a valuable presenter on various FX EXPO shows, where he always presents new and interesting ways how to trade price action and protect your own investments. Further, he is the co-founder and head of Elite Currensea Trading, an educational website for currency traders.