Daily Price Action
Shares

EURJPY: Clues Point to 800-Pip Target

Shares

On December 18th I pointed out a EURJPY selling opportunity.

The risk-sensitive pair had been trading within an 800 pip range since late February.

The range floor was 125.00, and the range ceiling was 133.00. With EURJPY trading at 127.80 on December 18th, shorts had nearly 300 pips to work with.

EURJPY broke our trend line support on the 18th and retested the area as new resistance on the 19th and 20th of December.

Fast forward to today, and the pair has reached our short-term target at 125.00.

In fact, EURJPY is at risk of breaking down even further should the pair close the day below the 125.00 handle.

One thing I like to do in situations like this is to use the prior range to identify a final target.

It’s the most straightforward method but is also highly effective.

First, we need to measure the distance between the exact range bottom at 124.90 to the range top at 133.10.

That gives us a height of 820 pips.

Second, we measure 820 pips below the former range bottom at 124.90.

That gives us a target of 116.70.

Once we have that figure, we can look for clues around the 116.70 region to see if it’s an area that could potentially trigger a reaction.

You’ll quickly notice that there is an open gap from April 21, 2017, near 116.35.

While it isn’t exactly 820 pips below 124.90, there are only 35 pips between the potential target and the open gap.

Considering the substantial distance we’re dealing with here, a 35 pip difference is inconsequential in my opinion.

There are also several swing highs around 116.35; further evidence that it’s a significant area for the EURJPY.

Keep in mind that a move of that magnitude will take weeks if not months to play out.

In summary, a daily close below 124.90 / 125.00 would expose 122.60, 120.70, 118.40 as well as the final target near 116.70.

Alternatively, a close back above 125.00 would negate the bearish outlook.

Save 40% on a Lifetime Membership to Daily Price Action – Ends January 31st!

Click Here to start profiting with Justin.

EURJPY range break

Leave a Comment:

48 comments
Maureen says

Thank you.

Reply
    Justin Bennett says

    You’re welcome.

    Reply
Bubusani says

You are a really eye opener. I have learned a lot from you. Thank you so much.

Reply
    Justin Bennett says

    It’s my pleasure. I’m always happy to help.

    Reply
Pierre Mifsud says

Good analysis…..I see it as 114.79 as at 1 st April 2017

Reply
    Pierre Mifsud says

    The same can be said about the GBPJPY with a 1000 pip range from highs of 149.6 down to a floor of 139.50 with a potential target of 127.25

    Reply
Francis Ogene says

Wow, great analysis. Simple is more.

Reply
    Justin Bennett says

    Appreciate that. Simple is always best in my opinion.

    Reply
Mahadi says

THANK YOU I HAVE LEARNED SOMETHING

Reply
    Justin Bennett says

    You’re welcome; always a good thing. 🙂

    Reply
Lance says

Meanwhile the EURUSD seems not to be going up (as previouslyr mooted) but ? has a head and shoulders on the weekly and seems to be rapidly chasing down.

Reply
    Al says

    There’s no head and shoulders on the weekly which means you can’t set a measured objective target, but price action is sticking with the weekly down trend which indicates it could soon break from the daily triangle and give you a target based on that.

    Reply
      Lance says

      Brilliant- thank you.

      Reply
        Justin Bennett says

        My pleasure, Lance.

        Reply
    Justin Bennett says

    It isn’t a head and shoulders. In fact, it’s quite the opposite in my opinion.

    Reply
Peter Pel says

Great analysis, such an eye opener

Reply
    Justin Bennett says

    Cheers, Peter.

    Reply
gareth says

thank you so much and god bless you

Reply
    Justin Bennett says

    You’re welcome, Gareth.

    Reply
Bolaji says

Your analysis always play out as plan, am going to trade this and see how it will play out.
Thank you

Reply
    Al says

    No it doesn’t, be careful. These are just trade ideas and if you don’t completely understand them then don’t engage with the market for real.

    Reply
    Justin Bennett says

    Well, not always. You’re welcome.

    Reply
Johnson says

I came across your YouTube channel in the 2nd week of Dec, 2018. I listened to your webinar ‘7 Secrets of Consistent Forex Profits’. I must say that I’ve been so blessed listening to the webinar cos it was very rich with good, insightful, practically useful information, (just as you promised in the webinar). Likewise, reading your posted FX pairs analyses has been very very enlightening. You have brought a lot of clarity to the price action trading approach. A big thanks to you, Justin. As soon as I can, I will sign up for your coaching program. I really look forward to doing that ASAP. Have a good profitable 2019. Many thanks.

Reply
    Justin Bennett says

    Wow, thanks for the kind words. I’m delighted that you’re finding the content helpful. Happy New Year.

    Reply
Lazola says

Wow, what a great eye. Now for the retest of that consolidation then I am SHORT. Otherwise, I will sit on the sidelines and wait.

Reply
TRT says

won’t happen, sorry…

Reply
    Alex says

    LOL around 500 pips in 5 mins wasn’t bad.

    Reply
Namzee Brown says

Thank you so much for this set up. You are the best coach ever!!!!

Reply
    Justin Bennett says

    Thanks, Namzee. It’s my pleasure.

    Reply
Joseph David says

Thanks for this powerful analysis.

Reply
    Justin Bennett says

    Anytime, Joseph. 🙂

    Reply
Howard says

Very good analysis. Weekly downtrend is Boss. Thanks Justin.

Reply
    Justin Bennett says

    You’re welcome.

    Reply
ignazio says

Could you show the graphs first and after your analysis.
It’s easier to understand what you mean

Reply
OGBORO preciouslife says

Thanks

Reply
    Justin Bennett says

    You’re welcome.

    Reply
Prasanna says

Sir ;
GBPUSD crashed yesterday after going bullish in profits ; do u think it will retrace to your previous tgts.?

Reply
DANIEL says

Justin, please do a take on USDCAD. I think that thing is getting ripe for a great short of many many pips. Would be nice to see you lay your experience on it.

Reply
Sammy says

I do not see a gap on TradersView. Can you explain that? And would that change your analysis?

Reply
    Justin Bennett says

    It depends on the broker. Out of four brokers I monitor, only one does not show the gap.

    Reply
Odafe says

Is it proper to trade both GPB/USD & EUR/USD?

Reply
    Justin Bennett says

    I’m not sure what you mean by “proper”.

    Reply
adi says

Thanks sir, it was a wonderful analysis.I have a question about that, will it still achieve the target of 116.35/70?
Because a bearish rejection developed on Thursday.

Reply
    Justin Bennett says

    Nobody knows the answer to that.

    Reply
    Dim says

    Stumbled to ascending trendline of lows of July 2012 and June 2016. Rejection was strong. Heading for the upper trendline of the formed ascending channel

    Reply
Add Your Reply