EUR/JPY potential reversal? BoJ rate hike hint deliver swing high
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UPGRADEWith the Japanese Yen basket trading close to all-time low, will we see Bank of Japan intervention as Governor Ueda hints at higher rates at the December meeting – our focus is EUR/JPY where the technical and fundamental picture highlights selling rallies, with the weekly chart showing possible completion of a bullish Elliott Wave count and a bearish Butterfly formation at 182.62 offering a whopping 5.7R risk-reward setup.
Selling at 182.62 with a stop at 183.62 gives a 100 pip stop loss and a target at 176.90 which is 572 pips away, while the ECB is in a medium-term cutting cycle offering bearish bias for the Euro and the BoJ is weighing pros and cons of a rate hike at the December 18-19 meeting which would be seen as easing off the accelerator not applying brakes, making selling rallies at 182.62 resistance a solid trade setup with great value.
With the Japanese Yen basket trading close to all-time low, will we see Bank of Japan intervention as Governor Ueda hints at higher rates at the December meeting – our focus is EUR/JPY where the technical and fundamental picture highlights selling rallies, with the weekly chart showing possible completion of a bullish Elliott Wave count and a bearish Butterfly formation at 182.62 offering a whopping 5.7R risk-reward setup.
Selling at 182.62 with a stop at 183.62 gives a 100 pip stop loss and a target at 176.90 which is 572 pips away, while the ECB is in a medium-term cutting cycle offering bearish bias for the Euro and the BoJ is weighing pros and cons of a rate hike at the December 18-19 meeting which would be seen as easing off the accelerator not applying brakes, making selling rallies at 182.62 resistance a solid trade setup with great value.
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