Good day all,
Markets posted another solid week of gains even as the “sell in May and stay away” line keeps popping up in different places. I will come up with another post on the equities front. For today, let us look at the EUR/JPY currency pair.
As many of you in the forex market should know, the biggest trend in forex majors over the last year or so should be the USD/JPY pair. What with the BOJ’s policy for the Yen. However, I want to look at another cross – EURJPY. Priceaction is more or less the same with USDJPY. EURJPY found resistance at the 126.00 region for most of the year; then, it broke decisively at the start of April and formed an ascending triangle. The triangle takes on a nice shape, and now it is confirmed because of the breakout on Thursday. Friday’s positve showing reinforces the breakout. I am afraid JPY will be a runaway train. So, a small position now is not a bad idea. In theory, we should see a slight retracement down as profit-taking ensues, and breakout traders get taken out.
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