Yen pairs are in my sights these days and I hope you guys sold off on my EURJPY pitch yesterday. Looking at it now, it fell approximately 140 pips or so. However, I do not believe this move is over.
I still hold my target firm at the 131.60 level. The price right now is 132.63 so that’s another 100 pips drop or so to be expected. If you do have a position open, recommendation is to scale out 60% to 75% and hold the remaining position for another 100 pips. A conservative entry is also recommended.
On the other hand, USDJPY resumes its consolidation. The longer it consolidates in this wedge, supposedly the stronger the breakout move.
Based on the look of it, the break-out should happen either Friday or next week actually. Friday is the Non-Farm Payroll release, which would generate quite a bit of buy sell activity. Based on the look of it, the Yen is gaining strength so a downside breakout is becoming more of a reality now.