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EURJPY: Are Sellers for Real This Time?

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It’s been nearly four weeks since I first mentioned the 131.80 area on the EURJPY. The level dates back to 2003 and became a foothold for buyers last month.

I’ve also covered the pair several times in recent weekly forecasts. That commentary has focused on the idea that the late October selloff created a potential double top reversal.

However, despite their best efforts, sellers have been unable to close the price below 131.82 on a daily closing basis. The lack of follow-through has left us on the sideline.

But something tells me EURJPY bears are close to confirming the 260 pip topping pattern. The recent lower high on November 2 is promising, yet we still need confirmation before further consideration is warranted.

So, just like in October, without a daily close at 5 pm EST below 131.82, there is no short setup. I wanted to clarify this because I’ve been asked several times if I’m in the trade.

I am not. I’ve merely been watching and waiting for a daily close below 131.82. Once that occurs, I will keep an eye out for a retest of the area as new resistance.

I know some traders were lured in by those intraday breaks below key support. For the rest of us, this is just a waiting game.

There’s no need to rush things because a breakdown would target the 129.30 area, a substantial 240 pips below the current price. Any setup where the potential reward is at least three times the risk is worth waiting for.

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EURJPY double top reversal on the daily chart

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12 comments
Jeff Dickstein says

Do you trade more than one same currency pair at a time, such as EUR/JPY and another EUR pair, for example, EUR/GBP?

Reply
    Justin Bennett says

    That depends on whether or not the first position is in profit. If it is I can be a bit more flexible.

    Reply
Chuck says

Justin if EJ closes below 131.82 on the daily and you decide to take a position would you typically take the short at the opening on the next candle or let it get into the old support then short or let it test old support them fall back down then buy? Hope that makes sense

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    Chuck says

    Sorry meant short/open position not “buy”

    Reply
    Justin Bennett says

    “I’ve merely been watching and waiting for a daily close below 131.82. Once that occurs, I will keep an eye out for a retest of the area as new resistance.”

    Reply
Sam says

I have been monitoring both the EUR/JPY and USD/JPY. I have observed the following, when the USD/JPY goes down the EUR/JPY goes down as well and when the USD/JPY goes up the EUR/JPY goes up as well.

Reply
    Justin Bennett says

    Right, the yen pairs often move in tandem.

    Reply
Sam says

I am off the view that the bulls are going to revisit 114.30/40 (USD/JPY), notice heavy price action at that level, I think 114.40 is going to pop. As a result this will have an impact on EUR/JPY.

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Rizwan Sadiq says

Hello Sir. i have a suggestion for you and hope you and your all other followers will like it.
Can you Please add search option on your site . where we can easily find any of your trade setup.which you uploaded is past. Thank you

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    Justin Bennett says

    See the right sidebar just below my bio.

    Reply
Gbaluke Richard says

&ow do I calculate my lot size using percentage of my money e. g $ 100 what is the 5 percent in lot size

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Ramesh says

Good day Justin,
I have lost money shorting this pair on quite a few occasions each time i thought it was ready to roll over. But i think that the sellers are definitely in control this time around. And even though this pair happens to be at support of its 2 month old sideways range currently, it did break below and retest another up trendline not seen on your chart. Thanks for the post, always welcomed.

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