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:
Good luck and good trading!