by Mike Ber, Forex Alerts
Cross posted with Zentrader.ca.
While all Japanese pairs that we cover remain bullish in the long term, we may expect consolidation in the short term. Everyone who is so desperate to be in JPY trade will be able to buy on a pullback.
This consolidation may be expected any time soon, perhaps even today, or within next two trading sessions, and may be quick or may take few days to unfold.
One of the concerns that we have is the lack of the follow-though. It can be debated what kind of strength the pair should display when it breaks important level, such as 100 was for USD/JPY. If you take a look at USD/JPY’s performance in April you will notice that the pair gained 3 days in a row on April 4th, 5th, and 6th – 3.84%, 1.14%, and 1.30%, it also gained 1.34% on April 19th once this figure was finally broken. The whole Wall-Street was obsessed with USD/JPY breaking the magic number of 100, and we gained only 1.96% on May 9th. We have been expecting a stronger upside move.
We cover USD/JPY and EUR/JPY in our daily reports. In this update we include CAD/JPY chart too. We believe that out of the three pairs CAD/JPY has the best trade setup.
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Commentary:
USD/JPY is trading within the 100.284 – 103.989 range.
USD/JPY broke out, and finally trading above 100. We are waiting for a good opportunity to enter long. We mentioned few levels where we prefer to buy on a pullback. At this point we want to enter long on a pullback to 100.284 level of support.
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Commentary:
We are changing our bias from Bullish-Neutral to Bullish.
EUR/JPY broke out and, we are waiting for a good opportunity to enter long. At this point 130.968 is the only level where we want to buy.
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