I’ve spoken about a bearish EURJPY scenario since April 3rd.
I also wrote about how the bearish scenario was intact while EURJPY was below 118.50 on April 8th.
That 118.50 area is the bottom of an ascending channel from the year-to-date low.
I’ve been short the EURJPY since the March 27th open.
I mentioned this short to Daily Price Action members over a week ago.
But if you missed the short from higher prices, there’s little reason to think you missed out altogether.
I still think EURJPY has the potential to reach the 112.00 area.
The intermediate downtrend combined with the recent breakdown of a multi-year trend line point to lower prices.
However, as I wrote last week, it’s going to take a daily close below the 116.00 region to open the door to 112.00.
As long as the EURJPY is trading above 116.00 on a daily closing basis, those initiating new shorts have to be careful.
I think at this point, it’s best to wait for a confirmed break below 116.00 before shorting the EURJPY.
That’s where I will be adding to my short for the third time since March 27th.
Alternatively, keep an eye on 118.00 as that area should attract sellers going forward.