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Lucas: Profit taking in EURJPY
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Steve Lucas from 3c Analysis is looking to trade EURJPY ahead of Japan’s general election on Sunday. Profit takers have entered the market as Prime Minister Shinzo Abe’s party, the Liberal Democratic Party, faces little opposition at the polls. A win will allow Abe the opportunity to continue his “Abenomic” policies and strengthen his position as Prime Minister ahead of the September 2015 presidential election.
A sequence of lower daily highs has formed on the EURJPY chart, despite Thursday’s slight rally. Steve also notes that the of trend higher-weekly lows has broken this week. These movements have created a bias towards selling rallies.
Looking to follow the market trend, Steve is planning on selling EURJPY at the market open as well as the currency cross hits JPY 147.71. He is targeting a dip towards JPY 146.10 and the JPY 145.59. A stop can be placed at Thursday’s high of JPY 148.08.
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