There are lots of opinions and hot air circulating around global markets regarding stimulus packages, bail-outs, interest rates, and credit markets but our main interest is in picking trends and trend changes, regardless of the time frame.
EUR/JPY remains the leading indicator amongst currency pairs and if you know where it is going, then you can trade almost anything. The trend remains clear; this pair is headed lower. After talking with some of the market players, they believe levels around 117.50 should cap in the short term and that if the market can break back above 120.00, then at the very least, the short term down trend will have been negated.
On the down side, I’m hearing of decent buying interest ahead of 115.00 but with fairly heavy stops below so use this level as your downside pivot.
So look to play a 115.00/117.50 range with a bearish bias. Good luck today.
