EURJPY out of an ascending triangle

Good day all,

Markets posted another solid week of gains even as the “sell in May and stay away” line keeps popping up in different places. I will come up with another post on the equities front. For today, let us look at the EUR/JPY currency pair.

As many of you in the forex market should know, the biggest trend in forex majors over the last year or so should be the USD/JPY pair. What with the BOJ’s policy for the Yen. However, I want to look at another cross – EURJPY. Priceaction is more or less the same with USDJPY. EURJPY found resistance at the 126.00 region for most of the year; then, it broke decisively at the start of April and formed an ascending triangle. The triangle takes on a nice shape, and now it is confirmed because of the breakout on Thursday. Friday’s positve showing reinforces the breakout. I am afraid JPY will be a runaway train. So, a small position now is not a bad idea. In theory, we should see a slight retracement down as profit-taking ensues, and breakout traders get taken out.

eurjpy

All analyses, recommendations, discussions and other information herein are published for general information. Readers should not rely solely on the information published on this blog and should seek independent financial advice prior to making any investment decision. The publisher accepts no liability for any loss whatsoever arising from any use of the information published herein.

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