EUR/JPY Pulls Back to Swing Entry After Non-Farm Payroll Release
The uptrend on the 60-minute EUR/JPY has been in place since approximately noon EST Thursday. In front of the Non-Farm Payroll release, this pair continued to show that the two days of correction since reaching a new one year low at 107.33 on June 29, that there was still bullish momentum within the overall downtrend on the daily chart. I will look to the daily (or end of day) time frame for what I believe is the most psychologically significant opinion of a market. This does not mean it’s the time frame in which I will set up a trade on…but I believe it certainly is the one that affects market opinion the greatest.
*Results are not guaranteed, individual experiences may vary. Past performance is not indicative of future results
The pullback today was on the heels of the Non-Farm Payroll release and subsequently has reached the 34 period EMA high of my Wave indicator. In my opinion the pullback is presenting a swing buy opportunity within the context of the 60-minute chart’s uptrend. There is also a Rising Wedge formation that has alerted. This is generated by the IBFX-PRS plug-in which automates chart patterns on the 15, 30, 60, 240-minute, and daily charts.
Notice that the uptrend line is overlapping with the 34 period EMA high at 109.80 and that the price level is also a minor psychological level. These three reasons, I believe, make for a strong support level and expectation of a continuation of the uptrend.
In the meanwhile, the U.S. markets are winding down for the three day Fourth of July holiday and price action is expected to congest as trading slows and volume lessens. The 15-minute chart has transitioned into a distribution market cycle and is, I believe, offering late-day opportunities to set up exhaustion fades into the Friday close. The 15-minute EUR/JPY has a current high to low range of 110.71 to 109.55.
*Results are not guaranteed, individual experiences may vary. Past performance is not indicative of future results
By using the Stochastics indicator as a confirmation of overbought or oversold, the high of the range can be sold while the low of the range can be bought. I think this is likely what the environment will be until next week’s trading resumes on a lighter than normal Monday morning. Note the ranges for the next 15, 30, and 60, and 240 minutes out area not showing that prices will reach the high of the range. By buying into the more likely -to-be-reachedlow of the range, a distribution buy entry can be entered. This could be in line with the uptrend the 60-minute chart and the swing buy.
*Trading in the off exchange retail foreign currency market is one of the riskiest forms of investment available in the financial markets and suitable for sophisticated individuals and institutions. The possibility exists that you could sustain a substantial loss of funds and therefore you should not invest money that you cannot afford to lose. Read the full risk disclaimer and privacy policy on trading at www.ibfx.com.
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