Be sure to protect yourself with a stop loss at 114.05. If this level is breached, too much risk exists as a move to 116.50 could be looming. Proceed trading the EUR/YEN with caution this upcoming week.
The stock market is due for a correction and this represents and ideal opportunity to short the EUR/YEN. Short With a Break below the yellow line and look to take profits a few weeks from now within the green lines.
Trading blueprint: Eur/yen buying opportunity. Buy between 111.30 – 111.45 with a tight stop at 111.10. Look to take profits in the 111.92 – 112.35 range. For those of you willing to hold through extended periods, reversing in the 112.75 area may be lucrative as risk-aversion should be the dominating trend heading into Wednesday’s retail sales report. The pair could drop into the mid 109′s prior to the report.
Trading Blueprint: Be patient with this trade, the current pattern does not indicate a sell-off at the Asian open therefore one last push higher needs to take place which should bring the pair to the 50% retracement level residing in the 110.30′s. Stop loss at 111.20. Take profits between 108.90 – 109.10.
Forex Trading Blueprint: Buy the EUR/YEN in the 107.50′s as this chart needs to establish a double bottom. Look to take profits in the 108.40′s prior to the London open. Stop loss at 107.29. DO NOT CHASE THIS TRADE! Buying above the 108 level will lead to problems. If the mid 107′s are not seen forget about this trade, tomorrow is another day.
Trading Blueprint: Short the EUR/YEN with a break below 109.50, exit the trade prior to London Open at 2:00am est. Could see a drop to 108 in Asian trading hours but there is an outside chance of a meltdown below the 108 area and could see the 107.30′s.
