EUR/JPY is, I find, the most tradeable pair during the Asian session. The break above 137.50 last night triggered a wave of stop loss buying and also momentum funds adding to existing longs. The sharp turnaround raises the danger of trailing stops now being triggered.
I am looking to trade from the short side this morning. I will sell into 136.00/30 and then add if bearish momentum starts to pick up. If the bigger trailing stops start getting triggered, I see the possibility of prices falling to the 133 handle. That’s where I will reverse and go long. (I will post the hourly and daily technicals as the morning progresses). Let’s hope for some volatility.
