Where should I send the trade setups?
100% privacy. I will never spam you!
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.