First Target Hit
The falling wedge breakout trade in EURJPY has now hit its initial target at 130.69 after triggering long on the break of 129.59. With USD seeing some buying across the European morning today, EUR has been a little weaker. However, with North America offline today for the Labour day holiday in the US, there is room for EUR to gather momentum again, supported by MACD and RSI both being bullish here. While price holds above the 129.59 level, bulls can look for a continuation higher towards the 132.02 region next.
Key Data to Watch
Not too much on the slate this week for EUR or JPY. Japanese trade balance data on Thursday will be watched, as will the final Eurozone CPI print on Friday. However, the bigger focus will likely be on key US data over the week – CPI and retail sales. Any USD weakness on the back of these readings is likely to benefit EUR in the near term, lifting EURJPY. Any surprise upside in those readings, however, will likely weigh on EURJPY.
Disclaimer: The material provided is for information purposes only and should not be considered as investment advice. The views, information, or opinions expressed in the text belong solely to the author, and not to the author’s employer, organization, committee or other group or individual or company.
Past performance is not indicative of future results.
High Risk Warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75% and 75% of retail investor accounts lose money when trading CFDs with Tickmill UK Ltd and Tickmill Europe Ltd respectively. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Futures and Options: Trading futures and options on margin carries a high degree of risk and may result in losses exceeding your initial investment. These products are not suitable for all investors. Ensure you fully understand the risks and take appropriate care to manage your risk.
With 10 years of experience as a private trader and professional market analyst under his belt, James has carved out an impressive industry reputation. Able to both dissect and explain the key fundamental developments in the market, he communicates their importance and relevance in a succinct and straight forward manner.