Euro-Jpy_10 June 2008
9. June, 2008
Traders welcome back. We saw bad news for the US on Friday, which means that we didn’t play the game like I planed. My plan didn’t work out to put some longs on USD/JPY and shorts on EUR/USD after NFP report. However, we didn’t trade it, but the setup was very good, cause any good $ news would bring us many pips. Remember, if technically and fundamentally showing you the same way of the trend, than there is nothing to be skeptical about, just grab the opportunity and make some money. In our case it was opposite; technically long, fundamentally short.
Ok, EUR/USD broke the resistance line of the triangle that I was talking on Friday, so new highs could be very near. But, honestly I don’t believe in this scenario in the very short term… It looks like we have more complexion wave 4 that we firstly thought. I also put on the side USD/JPY, it looks like this 200 pips range could hold prices in the middle for a while now… So let’s see what is developing right now on EUR/JPY.
We saw a clear breakout from daily correction pattern that I was talking about 2 weeks ago. Well it seems that huge wave 5 on a daily chart, could be in a process, which means impulses are here…After the NFP report was the pink wave iii) the strongest wave of the five wave sequence, like in many cases, so there is nothing else to expect but the correction, if the first five waves up in black wave i is done. Current high is 167,12 and I see a lot of resistances in this area, especially if you check out the highs from October, November and December in 2007 on your platform. So, I am expecting a pullback to around 164,40 where we have high from 28th of May and the daily resistance line, which now should be as support for new highs. I believe that I will try to make some pips with the long positions, if prices will fall to this support area. Anyway right now I am only watching this pair very closely to see if we are on the right way…. See you tomorrow, Grega.