EUR/JPY, components all near critical levels

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Today could be one of those rare, clarifying moments. You’ve got EUR/JPY within 35 pips of trend highs at 120.73, EUR/USD within 25 pips or so of its trend high at 1.3304 and USD/JPY about a quarter yen below 90.25.

All those levels could come into play as the day wears on. If long, trimming positions on a failure to break looks logical, looking to re-add on pullbacks is the way to play near-term.  Don’t ignore break-outs by all three components. That is about as strong a signal as you can get… What ever you do, DO NOT FADE BREAKOUTS in this environment.

6 Comments

  1. Thank you very much, Jamie. Your important reminder came in just in time to help me control my “fading” emotions! Thanks again.

  2. Germany’s Merkel Worried About Risk Of Global FX Manipulation

  3. Hi Jamie, sorry I’m new to forex and unsure of the terms. What do u mean by do not fade breakouts?

  4. Fade: to trade counter to. For instance, to “fade a trend” is to counter the trend. To fade a rumor is to believe it to be untrue and do the opposite of what the rumor would suggest.

  5. Ahhh got it. Thanks Jamie!

  6. There’s hope for you yet……..

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