I'm Bias for this pair my position SELL EURO/JPY @ 121.28 or better TAKE PROFIT 120.24 ( EXTENDABLE)
STOP LOSS 121.94 ( USE TRELLING STOP)
OUTLOOK:
The forecast is for good European data to continue to support the euro, probably to the 50% retracement level of 1.0854 and beyond. Our position in the euro/yen is therefore suspect. For one thing, it runs counter to the yield differentials and to the fundamentals.
The euro “should” be stronger against the yen, not weaker, revealing once again that positioning in the yen is a risk aversion play and almost nothing to do with anything else.
Mr. Abe meets Trump next week (Feb 10) and it’s going to be another trainwreck. Everyone knows it, none more so than the Japanese (who have been there before) and Abe and other officials reminding the US president of conventions and accords and past agreements on trade and currencies is not going to make the slightest difference to Trump’s behavior.
STOP LOSS 121.94 ( USE TRELLING STOP)
OUTLOOK:
The forecast is for good European data to continue to support the euro, probably to the 50% retracement level of 1.0854 and beyond. Our position in the euro/yen is therefore suspect. For one thing, it runs counter to the yield differentials and to the fundamentals.
The euro “should” be stronger against the yen, not weaker, revealing once again that positioning in the yen is a risk aversion play and almost nothing to do with anything else.
Mr. Abe meets Trump next week (Feb 10) and it’s going to be another trainwreck. Everyone knows it, none more so than the Japanese (who have been there before) and Abe and other officials reminding the US president of conventions and accords and past agreements on trade and currencies is not going to make the slightest difference to Trump’s behavior.
