Everything You Need to Succeed with EUR/JPY

Hello Friend!

Glad to see you again! Today let's talk about EUR/JPY! At this moment its ratio is the most interesting case for earnings! If we look at the latest market trends, we will see that EUR/JPY is in a side trend, which is of particular interest for us as traders.

The side trend is good because the price moves inside the corridor, which makes it possible to put up at predetermined lows (minimums) and put down at previously known highs (maximums). Such a movement is also relatively risk-free, even for a beginner, because the price goes several times through the same points and even in case of an error, you can always correct the situation.

Picture 1. The price chart for EUR/JPY for the period from 11/10/2018 to 12/10/2018.

As can be seen in Picture 1, the price is in a narrow side corridor, which indicates a period when traders try to determine future prospects and revise the cost. Also, on the eve of the Christmas holidays and the end of the calendar year, the markets become more efficient, which is reflected in less significant price fluctuations.

Picture 2. The price chart for EUR/JPY for the period from 10/11/2018 to 10/12/2018 with support and resistance lines.

As can be seen in Picture 2, the price of EUR/JPY is in a fairly narrow corridor, which is clearly visible on the chart, approximately 127.921 from the bottom and 128.86 from the top. A possible risk in such a situation is the uncertainty of further movement, which is the problem of forecasting whether the price will continue to move in a narrow corridor or gain direction up or down. To resolve this issue, we turn to the positions of major traders and see what are the prospects on the market in the nearest future.

Picture 3. The price chart for EUR/JPY for the period from 10/11/2018 to 10/12/2018 with the index of the major traders.

As can be seen in Picture 3, the index accurately describes the trends on EUR/JPY. At the moment, it is also clear that there has been no significant index change lately, which indicates a close continuation of the sideways trend.

Thus, in general, on the sideways trend, we recommend having a neutral 50/50 position up/down, starting from local highs and lows with the reference point 127.921 below and 128.86 above.

However, in the next days, it is better to build up short positions to play on the rebound from the upper limit.