Safe Haven

As expected, yesterday EURJPY high candle of 134.11 forming an evening star pattern indicated a reversal of strength.

EURJPY slide downward from London open to New York session close. The drop is similar to the slide in EURUSD indicating weakness in the EUR. USD and JPY strength coincide with retreating stock markets as forex investors shifting into “safe haven” currencies. It seem that share investors are nervous as September might be a terrible month for share prices after the run-up during the summer.

The fall in EURJPY carried all the way to the retracement at 138.2% and subsequently it went sideway during morning Asian session. The cross could see some retracement upward from the recent slide.

short at 61.8% retracement

EURJPY reversal began at late Asian session yesterday. The cross gain strength as EUR strengthened across all pairs.

The cross uptrend was supported by the red trend line and it managed to breach the 60 ema by mid day Asian session (refer to the 1 HrTF chart). The cross is expected to experience a resistance at 61.8% retracement and the 200 ema. I look for a short entry at about 7:00 GMT or at London open.

Entered a short position at 7:19 GMT with indies showing bearish sign. Entered at 133.95. With my target price of 30 pips, my exit will be at 133.65. With the cross moved almost flat, I exited at 133.78 when the indies indicated a reversal.

I waited for any short position again since I believed the cross has showed weakness especially looking at longer time frame.

Entered a short position at 133.85 (8:04 GMT) with target at 133.55. Managed to achieve the target 25 minutes later. Total gain is 47 pips.