The EUR/JPY pair tried to rally during the course of September, but as you can see gave back about half of the gains. The resulting candle ended up being a bit of a shooting star, but it’s just above the 135 handle, which for me is massive supportive. Ultimately, I think that there might be some support at the 135 level, as a result the market will more than likely find buyers in that region. After all, there are quite a bit of supportive looking candles just below that area, so I’m very hesitant to sell this market in that region.
With that, I am still a bit of a “buy only” type of trader in this marketplace, and I am going to look for supportive candles in order to start going long. I think that ultimately by the end of the month we could go as high as 141, and possibly even as high as the 145 level.
Broken out
This market is most certainly broken out as far as I can see, especially after getting above the 135 level. The market as you can see should continue to go much higher, and I think that the 145 level will be targeted given enough time. I think that this market is focusing more on the Japanese yen and less on the Euro overall, and as long as that is the case, I think that this pair will continue to go much higher.
With that, I will be very patient this month, but I think there’s plenty of bullish pressure underneath and as a result I think that it’s only a matter of time before we have the ability to hold onto a longer-term trade. This will be especially true if we get some type of bounce in the Euro overall, but I’m not necessarily holding my breath for that particular move. Ultimately, I think that this market will continue to go much higher, and that it is only a matter of time before selling the Japanese yen will continue to be the easiest trade in the Forex markets.
