EURJPY trading around 113 level and it looks bearish from my point of view in the sense that we have a possible wave a of a double combination that started after the previous contracting triangle ended.
This being a cross, it should be mentioned that it is travelling based on the differences between the two majors, the EURUSD and USDJPY.
Recent NFP data suggests US economy still doing very well and it can be seen that equities really loved that number. However, the JPY pairs did not really confirm in the sense that after the initial pop, USDJPY is giving up its gains while equities still holding on them.
This calls for a broader JPY move and I would say that EURUSD will follow on the same path. This makes the cross, the EURJPY a favorite to the short side, so staying short with 114 stop loss and targeting levels below 109 should be a nice trade with a nice rr ratio.
About Mircea Vasiu
Mircea Vasiu has an MBA in International Business from an American University, graduating Magna Cum Laudae. He has been a professional trader for the last 8 years and is involved in various educational projects for different financial companies. He also runs a trading signal for the currency markets at www.capitalpropertiesfx.com.