I have a couple of thoughts that went into consideration for tonight’s pick. First, we had the Japanese Finance Minister Sadakazu Tanigaki comment that the movements in the currency markets as of late may be excessive after the G-7 announced that Asian countries should allow their currency to strengthen. Also, we have an interest rate announcement coming from the ECB at 5:00 am EST. It’s almost certain amongst speculators that they will keep rates at 2.5%,but the market will be listening for a hint of future rate hikes amidst inflationary pressures due to rising energy prices. So, I expect to see volatility within the first few hours of the European session. Hopefully we can catch some pips. With the Euro trending higher against the Yen, I’m looking for a long trade tomorrow. But of course, I have a short idea just to be ready for whatever the market gives us:
Long EUR/JPY at 143.94, stop at 143.60, PT1 at 144.17, PT2 at 144.37
Short EUR/JPY at 143.20, stop at 143.55, PT1 at 143.00, PT2 at 142.80
Good luck and good trading!