Sorry, you need to enable JavaScript to visit this website.

EUR/JPY Forecast 22 Apr 2014

You are here

EUR/JPY Chart 22 Apr 2014
5/5 of 2 ratings

Great opportunity to buy daily calls in EUR/JPY if 141.70-80 is broken

As we get into the US session trading, we are seeing great opportunity to buy daily calls on the EUR/JPY binary options forex pair. Just as we were wondering which pair suits our style best we are seeing the Euro inching gains since bottoming out in early New York. Current levels at 141.60 provide a great trade, unless...

Unless we see a sharp drop in stock which would stoke safe heaven demand in the Japanese Yen, we are thinking that this trade is very safe. With about 6 hours remaining before expiry our team is looking to buy daily calls only on a break above 141.70-80 tonight or tomorrow. Alternatively the support level where we would be reversing our trade is just below at 141.20.

Volatility has been dormant in recent days, its as if the market is mesmerized by the potential developments across the world, with the Ukrainian crisis still unresolved and the main news triggers starting tomorrow. Today's housing data from the US proved to be supportive for the stock market, as it is currently trading up by about half a percentage point.

The prices of homes have marked a slight increase on a monthly basis by 0.6%, while existing home sales have risen more than expected as the market turned quite bullish following the data releases. We anticipate this trend to hold into the close.

The main challenges ahead for risk sentiment and for the EUR/JPY which tracks it is arising from increased importance of Chinese manufacturing data early tomorrow morning. That will be followed by European data, where we are also expecting positive developments.

On the charts we have a key level to be overcome above current levels and that is the area from where the price has dropped lower about 4 times currently - 141.70-80. If we see a sustained break higher on an hourly basis we would be buying additional calls for tomorrow's expiry.

Alternatively the downside remains supported around 141.20 with some solid bids materializing there this week. We tend to subscribe to the opinion that if these levels are broken we will see a swift drop towards 141.00 and below, so if we see an hourly sustained break lower, we would be buying put options.

Disclaimer: The article is written for informative purposes only and it is not financial advice. The author does not have any position in the currency pairs mentioned, and no plans to initiate a position. He wrote the article himself and expressed his own opinions. He has no business nor personal relationships with any mentioned government entities or stocks. Readers should not treat any opinion expressed by the author as a specific inducement to make a particular trade or follow a particular strategy, but only as an expression of his opinion.

You may also read