With the whole “Yen carry liquidation” scare, whether it’s real or not, has brought many of the Yen crosses down to what seems like an “extremely” oversold level. This may be a great opportunity to catch an upside move in EUR/JPY, as we may see an opportunity to catch a retracement and possible re-interest in carry trades.
Technically, the pair is trading near a psychologically important price area – 155.00. The stochastics and RSi are near oversold territory, so we may see buying interest during the Euro session. Here’s a trade idea:
Long EUR/JPY at 155.00, stop at 154.50, pt1 at 155.50, pt2 at 155.90
Remember to never risk more that 1% of your account on any single trade, so please adjust your position sizes accordingly.
Good luck and good trading!