All This Argy-Bargy IS Creating A Potential Opportunity

With the North Korean rhetoric pushing capital into the safe havens such as CHF and JPY a need for a cool head is needed. Money has been made be on the risk-off environment, however this will not last and the current movement should be seen as a shorter term pullback in the midst of bigger trending moves. In this context, let's examine EURJPY on multiple time frames.

Monthly

• This is a monthly heiken ashi chart.

• The current candle is blue.

• This indicates a long term monthly uptrend is underway.

Weekly

• This is a weekly candlestick chart.

• There is a higher trough followed by a higher peak.

• Therefore there is a weekly uptrend in force.

4 Hour

• This is a 4H candlestick chart.

• EURJPY has pulled back into a strong resistance turned support area (blue rectangle).

• This area has acted as support (green arrows) and resistance (red arrows) multiple times.

• It is certainly a level that the market has been taking notice of.

Conclusion

• Look for a change from a risk-off to a risk-on environment.
• When this happens we should see a bounce off current support levels as bulls take advantage of value.