Most of the JPY pairs are in some sort of reversal pattern at the moment. It's unclear if these reversals are consolidations or true longer term trend reversals. However, we should be able to grab some nice pips from these moves. The EURJPY is on my radar at present. The combined with a longer term , provide strong support for a trend reversal (at a short term move). In addition, my Trend Signal indicator is showing a new signal on the . NOTE: signals do not happen very often and when they do, they are powerful confirmation. We still need the current daily candle to close before we have final confirmation.
My entry - I am waiting for a break below the 131.50 ( ish ) level. Basically, I want to see the recent swing low fail before I enter. I will place my Stop @ 133.245 and my Target @ 128.735. My entry price should be around 131.40. We have close to a 3:1 risk/reward on this trade, so the math adds up.
Currency Barometer - The Long Term Currency Barometer (4 hour) shows lot's of room to the upside for the JPY, with a recent bounce off of the 50 level. The EUR looks like it wants to bounce off of the 50 level to the down side. So far, the Currency Barometer support the EURJPY to the down side.