Top trade idea for January 21st, 2016 – EURJPY
By Mircea Vasiu on Jan 21, 2016 09:04:50 GMT
Ahead of the ECB we are looking at the eurjpy cross as it is finding itself in a very interesting spot in the sense that a contracting triangle on the daily chart should form.
This contracting triangle already has three legs completed, namely waves a, b and c and now we should move above 140 to complete wave d. Any d wave of a triangle must be a corrective wave, and if I were to choose between a flat or a zigzag I would say that most likely it will be a zig-zag family pattern.
Draghi will have a tough time today explaining why oil effects are not transitory and personally I don’t think he will talk the currency down. Nevertheless, we are trading technicals here and not fundamentals, so staying long for 140 with a 125.00 stop loss should do the trick.
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.
Recent posts by Mircea Vasiu
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