EUR/JPY just sported what looks like a tweezer top around the 122.50 handle. That’s right at a resistance level that has kept the bulls at bay at least twice since mid-December!
Can the bears hold the fort for another day? Shorting at the earliest signs of bearish momentum would make for a good play especially if EUR/JPY drops back to its 120.25 range support levels.
If you’d rather buy the common currency against the yen, however, then you’ll want to wait for a legit break above 122.50 and trade a breakout play instead.
Whichever direction you choose to trade, make sure you practice good risk management like it’s your top New Year’s resolution!
About a month ago we talked about how .8400 is lookin’ tight as a potential support on EUR/GBP’s long-term range.
Fast forward to today and it looks like some bulls paid attention. EUR/GBP is now about 180 pips or so from the level, yo!
Is it too late to jump in? Not necessarily. As you can see, the pair is still on the lower end of its 6-month and 1-year ranges. You can still grab a couple of pips until momentum dries out!
Buying at current levels could still work especially if you’re confident that EUR/GBP will shoot back up to its .9250 long-term range resistance.
If you’re not sold on EUR/GBP trading even higher, then you can also wait for bearish momentum to start in the lower time frames and aim for a possible move back down to the .8400 support.