The Euro is fighting to hold a bullish tone, downside pressure is intense
The EUR/JPY pair is currently fighting for the last breath of the bears. The pair has been sold off sharply as risk assets were sold off in the wake of disappointing housing starts data released at 13:30 GMT.
While we are focusing on the trend line that has already been broken but still indecisively so, the industrial production numbers at 16:15 have hit the wires and managed to provide us with some rally as stocks liked the fact that US industry has been expanding for a 5th straight month.
For most of the European session the EUR/JPY binary options forex pair has been trading close to 142 and above that level since European stocks have been steadily rising. The pair has traded as low as 141.49 after the data has been released at 13:30 GMT.
In the interest of fairness we have already bought a call on this the pair with an hourly option, however that is a risky move and we have a safer trade that is buying at current levels around 141.63 to mark a daily close above the price.
To sum it up clearly - a daily call purchase right now makes sense to us even as we are awaiting more data from the US at 16:55 GMT when the consumer sentiment number is released. Make no mistake it is a risky business, but in our industry taking risks is a must, they just have to be properly measured.
Our efforts will be neutralized if we see a close in the pair on an hourly basis below 141.50. The bulls will capitulate and we could drop lower quickly as stop loss orders on the forex market are triggered and traders head for the weekly exits. Stay tuned to our forecasts for more information on different currencies and happy Friday!