Top trade idea for December 3rd, 2015 – USDJPY
By Mircea Vasiu on Dec 3, 2015 11:13:49 GMT
Ahead of two important events like the ECB and NFP this end of week, the usdjpy is looking bearish from my point of view in the sense that we have a b wave, a corrective one, that is supposed to end around these current levels as the pattern we’re looking at is not supposed to break above 125.25, so that is the stop loss for the short position recommended here.
It means that the whole pattern to the downside, the one in magenta, is a corrective wave and now that wave b is retraced more than 61.8% when compared with the length of wave a, the c wave to the downside should start.
Any c wave is an impulsive move if not part of a triangle so the move lower should have some traction.
This technical setup contrasts with what the Fed is saying that is going to do but from a technical point of view it is as bearish as bearish can be.
As a consequence, I am favoring the short side targeting the 116 level while having a stop loss at 125.25.
About Mircea Vasiu
Mircea Vasiu has an MBA in International Business from an American University, graduating Magna Cum Laudae. He has been a professional trader for the last 8 years and is involved in various educational projects for different financial companies. He also runs a trading signal for the currency markets at www.capitalpropertiesfx.com.
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