Nick Nasad
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EUR/JPY - Re-Accumulation Phase After Mark-Up, Further Gains Next?

The EUR/JPY finds itself weaker following the Tuesday European session (10/15). However this may present an opportunity if risk-sentiment can turn around. 

When we add context by looking at the 4HR view, we see that after a 2-1/2 week decline, the last 4 trading sessions have seen the bulls put on a strong display.

  • There was a nice double bottom pattern that presented itself in the first half of October with a neckline around the 132 handle.
  • That DB pattern preceded an impulsive mark-up phase to 133.60 that was around 220 pips from bottom to top.
  • What's next then? If there are signs of resolution in Washington, then the JPY X's should head higher, with upside targets near the 134.00 and 134.70. However, that's not a given and so its important to be on top of the news.

- Nick