EURJPY Consolidating, With Gap to the Short Side

Again, sorry for the lack of posts, but I'm seeing something setting up that has caught my eye.

The EURJPY is consolidating just above 127.00, with the EURUSD finding support at 1.3585 and the USDJPY at 93.50.


In the past, I've written about using the EURUSD and the USDJPY as indicators for the EURJPY. If the indicators break below their support levels, and the EURJPY breaks below the major pshych level at 127.00, we could see the EURJPY make a break down and try to close that gap down to 125.70. That would be a nice 100+ pip move. This next hour or two, going into the NY open is key.

RE: USDJPY Trading in Tight Range

The GBPJPY broke it's range for a 50+ pip move down, and the EURJPY made a 40 pip move down after it broke below 122.00. Yes, I know these pairs have potential to move more, but I wasn't expecting a big move. That's why I said I'd be happy for a quick 40-50 pip move, which would test yesterday's lows. Remember not to get greedy. A 40% profit margin on a trade lasting no more than an hour, isn't a bad day's work.

You've got to grab those pips when you can!



Once the USDJPY broke below 90.15, it's move down made the EURJPY and the GBPJPY move 40 and 50 pips, for it smaller move of 19 pips. I liked how the USDJPY was stacking up along the 90.15 support, showing pressure on the sell side.


I hope some of you could see how I recognized that set up, and were able to grab a few pips.

USDJPY Trading in Tight Range

Looking of the Yen crosses to make a break out of the tight range they've been trading in for the past few hours. Watch for range breaks on EURJPY and the GBPJPY, particularly to the downside. Remember to watch the USDJPY as an indicator. I'd be happy to grab 40-50 pips on a quick move.

GBPUSD and GBPJPY

GBPUSD has been following Friday's trendline down and has yet to get back to 1.5970, but now is threatening to break above the trendline. PA is slow, but it is Monday.

GBPJPY, after staying above Friday's trendline, following the NFP, has since taken a dive under the trendline, also below the 157, and then took a bounce off of the 156.50. One of the readers, joked with me about my affection for the psyche levels on the GBPJPY, well if you look at most of the S/R levels, 158, 157.50, 157, 156. 50, etc. on this pair, they are very reliable, more so than on any other pair.

EURUSD is still shying away from 1.40.

Of note, the AUDUSD is starting to form a wedge, with .8080 as resistance.

Great example of a set up on the EURCHF

Click Here!

I have been watching this set up, but the EURCHF is usually a slow mover, so I didn't post it, because most of us are the high octane junkies on the GBPJPY. It set up nice and makes for a good chart, so I wanted to post it. It is a great example of something to watch for, going up, or down.

See all the PA stacked up along the 1.5163 line? Then, the candles pushed up tighter against it and got smaller and smaller. This is a great sort of break to watch for on any pair.